McConnell Dowell to construct NEGI

McConnell Dowell has been awarded the construction contract for the North East Gas Interconnector (NEGI) following the announcement earlier this week that Jemena will be operating it.

The 623 km pipeline will link Tennant Creek in the Territory to the east coast gas market via Mt Isa in Queensland and has a capital cost of around $800 million.

McConnell Dowell supported Jemena through the tender process for the NEGI project and will continue in this role as the agreed construction contractor for the project.

Jim Frith, McConnell Dowell’s executive general manager - pipelines, said “The collaborative Early Contractor Involvement approach adopted by Jemena has assisted McConnell Dowell and other project partners and key stakeholders to work together to provide optimized solutions for this project. We thank the Jemena team for providing us with this opportunity.

“We look forward to project execution so we can play our part in delivering the full benefits of this project to the community and other project partners. The project is an important addition to our significant track record of successful major pipeline and mechanical infrastructure delivery.”

The construction scope for this contract will include the 623 km high pressure gas pipeline, two compressor stations and gas treatment facilities. The value of this construction work is expected to exceed $300 million.

Jemena were announced as the winner of the contract on 17 November and the decision was welcomed by the Australian Pipelines and Gas Association. The association’s chief executive, Cheryl Cartwright, said “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.”

“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.”

Construction of the NEGI is expected to be completed by 2018. Once completed, it will be known as the Northern Gas Pipeline (NGP).

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