Update: North East Gas Interconnector

by Energy Action | Apr 09, 2015
A gas pipeline connection from the Territory to meet energy demands on the eastern seaboard opening up potential development opportunities and expected cheaper domestic prices is now very likely to be built.

gas pipeline connection from the Territory to meet energy demands on the eastern seaboard opening up potential development opportunities and expected cheaper domestic prices is now very likely to be built.

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

APA GroupDDG Operations, Merlin Energy Australia and SGSP Assets have now been chosen from a shortlist of nine candidates to submit final proposals to complete the project.

The billion-dollar North East Gas Interconnector would link more than 2000km of existing pipeline in the Territory to more than 7000km on the east coast, most likely via a route between either Alice Springs and Moomba or Tennant Creek and Mount Isa.

The Territory could have as much as 200 trillion cubic feet of gas in onshore basins or enough to power all of Australia for 200 years, according to estimates relied upon by the government in justifying the pipeline project. A further 30 trillion cubic feet is believed to exist offshore. East coast gas demand is predicted to as much as triple as LNG exports increase.

A preferred bidder is likely to be chosen by the end of the year. That company would then be expected to clear all environmental and regulatory hurdles sometime in 2017, with the pipeline expected to go into operation mid-2018.

The NSW and federal governments have previously expressed support for the project.

It is expected the evaluation process will be completed by the end of March. The Territory Government, Chief Minister Adam Giles said “We know that this project is time critical so we are hoping the competitive process will be finalised in late September 2015, with Contractual and Financial Close shortly thereafter,”.

North-East-Gas-Interconnector

Source: Northern Territory Government

Leave a comment