Jemena officially completes NGP

Construction of Jemena’s Northern Gas Pipeline (NGP) has officially been completed.

The 622 km pipeline will transport gas from Northern Territory gas fields to Mount Isa in northwest Queensland, with around 80 per cent of the pipeline’s 90 TJ/d capacity already contracted.

The pipeline will supply a variety of local Queensland businesses, including Incitec Pivot’s Phosphate Hill and Gibson Island facilities, as well as a range of other commercial operations.

The project was constructed by Jemena’s contractors Spiecapag Australia and McConnell Dowell over a period of approximately 17 months.

Jemena Managing Director Frank Tudor said the NGP was helping to provide much-needed gas to the domestic market.

“I commend the NT Government for commissioning the NGP project in 2015 and am proud that the Territory is now well-placed to become the home of Australia’s gas industry alongside Queensland,” he said.

“We know that the NT has enough gas to meet Australia’s future supply needs for the next 200 years or more, and our pipeline is the crucial, missing, link that will connect this gas with Australian homes and businesses.”

Mr Tudor said the project had contributed a sizeable amount to local industry, while flagging the possibility of increasing the pipeline’s capacity in the future.

“Provided gas is proven as commercially viable in the NT, Jemena will be able to increase the NGP’s capacity from around 90 TJ a day up to 700 TJ a day,” he said.

“To put this in context, this is enough gas to meet the average daily gas needs of Sydney, Brisbane, and Adelaide combined.

The NGP pipeline route.

“The foundations we’ve laid in the Territory mean we will be able to complete this work at an expedited schedule while creating around 4,000 jobs and investing approximately $3 to 4 billion.”

The Australian Pipelines and Gas Association (APGA) endorsed the project, with CEO Steve Davies saying the NGP would greatly assist with domestic gas supply.

“Now towns, businesses and resource projects along the pipeline will also have an opportunity to benefit from the new gas brought to the area,” he said.

“Importantly, the tight conditions in the east coast gas market may be somewhat eased because of this injection of supply.”

Mr Davies said gas pipelines like the NGP consistently provided significant benefits to Australian homes and businesses.

“Gas pipelines continue to provide efficient, flexible and valuable services to the economy,” he said.

“While the distances gas is being transported is increasing, transmission costs remain a small percentage of gas bills for industrial, commercial and residential consumers.”

Commercial operations for the NGP are targeted to commence between 29 December 2018 to 10 January 2019.

For more information visit the Jemena website.

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