Jemena Selected to Build Gas Pipeline from NT to Australian East Coast

The Northern Territory (NT) government has selected Jemena Northern Gas Pipeline Pty Ltd to construct and operate the pipeline that will supply gas to Australia’s eastern markets.

The North East Gas Interconnector (NEGI) 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, NT government said in a statement Tuesday.

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. The quantity of gas PWC is entitled to under its contracts far exceeds the amount needed to meet the NT's energy needs, the government said.

PWC will use a gas sales agreement with Incitec Pivot Ltd to lock in a guaranteed gas supply for approximately 10 years from the completion of the NEGI to 2028.