Jemena to construct NEGI pipeline

Paul Adams speaks at the announcement with Adam Giles.

Paul Adams speaks at the announcement with Adam Giles.

Jemena has been selected as the winning bidder to construct the North East Gas Interconnector (NEGI) gas pipeline.

The gas pipeline route selected was northern option - the lower cost option to develop - and as such will be developed from Tennant Creek and Mt Isa.

According to Jemena Managing Director Paul Adams, the pipeline will be a scaleable pipeline. Speaking to journalists at the announcement, Mr Adams said that a 14 inch diameter line was being discussed, however there was the potential to scale the diameter up to 18 to 20 inches.

Mr Adams also said that Jemena’s ownership of the NSW gas network played a critical part in being awarded the contract over other bidders, including APA Group.

The Australian Pipelines and Gas Association (APGA) welcomes the announcement from the NT Government and congratulated Jemena.

APGA Chief Executive Cheryl Cartwright welcomed the NT Government’s decision to choose an option that would not require government funding to underwrite the project.

“Since privatisation many years ago, no government funding has been required to build and operate this critical gas transmission infrastructure that provides as much energy to the economy as electricity infrastructure,” Ms Cartwright said.

“This is clearly one of the major reasons for choosing the northern route for the pipeline.”

The four bids to build the North East Gas Interconnector (NEGI) gas pipeline were split between two that proposed linking the NT to Mt Isa in Queensland and two that prosed building a longer link to Moomba in South Australia. The longer link was likely to require substantial government underwriting.

“With the delays in developing gas reserves in New South Wales and onshore Victoria, opening up supplies from the Northern Territory will help to ease pressure on gas demand in eastern Australia,” Ms Cartwright said.

“Gas has a role to play in power generation, manufacturing and in the home. It is a critical part of the energy mix as we move towards lower emissions.

“The NEGI will also help to encourage development of shale gas fields in the NT and provide a boost to initiatives to further develop Northern Australia.”

Enter your details to subscribe to the free fortnightly Gas Today e-newsletter

Thank you for signing up for the Gas Today Online Update.