Jemena begins construction of $639.37m gas pipeline at Mount Isa in Australia

Jemena has begun construction of the A$800m ($639.37m) interstate Northern gas pipeline at Mount Isa in Queensland, Australia.

The pipeline, spanning 622km, will link Tennant Creek in the Northern Territory to Mount Isa and is expected to flow its first gas next year.

Around 141km of the pipeline will be located in Queensland between the Isa and the border.

Queensland Minister for natural resources and mines Dr Anthony Lynham said: “This pipeline project is already filling paypackets in North Queensland, with more than 200 Queenslanders employed by Jemena to date, and 26 contracts awarded to companies in Queensland, with half of these contracts in the Mount Isa region.

“As well, accessible, affordable gas is critical as a feedstock for manufacturers and as an energy source.

“The pipeline extension under investigation will help connect gas fields in the Northern Territory to the east coast market, adding to supply to help ease current supply concerns.”

The development comes after the company commenced construction at the Tennant Creek end in July this year.

At the time of a sod-turning ceremony near Tennant Creek, Jemena managing director Paul Adams said: “This project is a boon for businesses that rely on gas as either a feedstock or fuel source by providing them with access to new gas at a cheaper price, particularly when compared to the costs associated with transporting gas over long distances from the Moomba Gas Hub to Queensland and New South Wales.”

Investigative work is in progress on the Northern Gas Pipeline expansion plan, which entails extension from Mount Isa to the Wallumbilla Gas Hub in an attempt to further integrate Territory gas into the east-coast gas grid.