The Northern Territory government selected Jemena Northern Gas Pipeline to build and operate the North East Gas Interconnector (NEGI) pipeline.
The pipeline will cost A$800 million to construct and will run for 622 kilometres between Tennant Creek in the Northern Territory and Mount Isa in Queensland, connecting the NT and eastern gas markets, according to a government’s statement issued on Tuesday.
The pipeline connects the energy needs of the east coast with the vast gas reserves in Northern Territory. It is estimated the Territory has more than 200 trillion cubic feet of gas.
Major natural gas developments in the Territory include the Inpex-operated Ichthys liquefied natural gas project near Darwin.
All royalties from the onshore oil and gas industry will go towards the vocational education and training and other areas of the education sector, the government said.
Jemena expects construction of its 14-inch pipeline to be completed by 2018.
The NT government’s Power and Water Corporation (PWC) will supply gas to the NEGI from its contracted suppliers.
Under a long-term gas supply agreement with Incitec Pivot under, PWC will supply the gas that is excess to the requirements of it’s customers in the Northern Territory for a period of 10 years starting with the completion of the North East Gas Interconnector in 2028, the statement reads.
LNG World News Staff; Image: onshoregas.nt.gov.au