Jemena selected to construct $800m North East Gas Interconnector pipeline

Australia-based energy infrastructure company Jemena has been selected by the Northern Territory Government to build and operate the $800m North East Gas Interconnector (NEGI).

The 623km pipeline will connect Tennant Creek in the territory to Mt Isa in Queensland.

Jemena managing director Paul Adams said gas from the pipeline is expected to flow to east coast markets from 2018.

"Building the NEGI will drive commercial exploration and development of currently untapped gas reserves, unlocking the next phase of economic growth for the Territory and helping build a stronger Northern Australia.

"The pipeline is cost-effective and relatively quick to build, so it will support a strong gas industry for the Territory by getting gas to market at a competitive price, accelerating development of NT gas fields and helping create jobs and opportunities in the gas industry."

Jemena further plans to build a link that will connect Mt Isa to the Wallumbilla hub in Queensland in a bid to improve the reliability of the gas transmission network.

According to the company, construction of the pipeline will create up to 600 jobs for locals and offer up to 100 contracts for local businesses, worth around $112m.

Upon completion of construction, which is expected to take place in by 2018, NEGI will be known as the Northern Gas Pipeline (NGP).

Northern Territory Chief Minister Adam Giles said: "This nation-building project will generate investment in regional infrastructure and deliver real jobs with no financial commitment from taxpayers."

The NT Government’s Power and Water Corporation (PWC) will supply gas to the NEGI from its contracted suppliers.

Using a gas sales agreement with fertiliser company Incitec Pivot, the company will lock in a guaranteed gas supply for about ten years from the completion of the NEGI through 2028.

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Image: Gas from the NEGI pipeline will flow to east coast markets from 2018. Photo: courtesy of puttsk/ FreeDigitalPhotos.net