North East Gas Interconnector

The Northern Territory Government is working to facilitate the development of a gas pipeline connection from the Territory to meet energy demands on the eastern seaboard and to contribute to national energy security.

The Northern Territory Government has granted Major Project Status to the proposed gas pipeline and has commenced a competitive bid process to identify proponents to build, own and operate the pipeline.

The NT Chief Minister Adam Giles said “The construction of this gas pipeline is an infrastructure project of national significance. It’s also a matter of urgency for the eastern states which are fast approaching an energy security crisis”.

                                    Source: Northern Territory Government

The Northern Territory Government’s first step in the competitive bid process was its Call for Expressions of Interest which closed on 15 December 2014 and resulted in the shortlisting of 11 companies who have been invited to participate in the next stage of the bid process and submit a response to a Request for Initial Proposal which closes on 2 March 2015.

The 11 companies that have been invited to proceed to the formal Request for Initial Proposal stage are: APA Group; Berkshire Hathaway Energy; DDG Operations (Duet); Enbridge International; GDF Suez; Macquarie Capital; Marubeni Corporation; Merlin Energy; OSD Midstream; Quanta Capital; and SGSP (Australia) (Jemena).

It is intended that a select number of proponents will be invited to progress to a final Request for Proposal stage which will close in September 2015 with a successful proponent being announced shortly thereafter.

The Council of Australian Governments (COAG) has supported the connection of the Northern and Eastern Gas Markets stating:

“COAG supported the work being undertaken by the Northern Territory to establish a competitive process for the private sector to bring forward proposals for the construction and operation of a pipeline to connect the Northern and Eastern Gas Markets. COAG agreed that connecting these gas markets is the next step to developing a national gas grid and will contribute to the development of a more national and competitive domestic gas market, helping to improve supply security.”