Construction begins on Jemena’s NGP
Jemena’s $800 million Northern Gas Pipeline (NGP) project has reached another key milestone with construction of the pipeline formally commencing in mid-July in northern Australia.
Attending a sod-turning ceremony near Tennant Creek, Northern Territory, to mark the occasion, Jemena Managing Director Paul Adams said the NGP will play a crucial role in helping to resolve the east-coast gas supply crisis.
“This project is a boon for businesses that rely on gas as either a feedstock or fuel source by providing them with access to new gas at a cheaper price, particularly when compared to the costs associated with transporting gas over long distances from the Moomba Gas Hub to Queensland and New South Wales,” Mr Adams said.
“Jemena has already commenced investigative work on expanding the NGP and extending it south from Mt Isa to the Wallumbilla Gas Hub to further integrate Territory gas into the east-coast gas grid, provided additional gas supplies are made available in the Territory.
“Our modelling suggests that the pipeline can be relatively easily expanded and extended to transport up to, or beyond, 700 TJs of gas per day.
“This far exceeds gas used on an average day in the New South Wales and Queensland markets.
“The pipeline will also benefit Australian households and businesses in the southern states, as it will free up gas currently flowing north to supply LNG plants in Queensland, making this gas available for use in New South Wales, Victoria and South Australia.”
Working with local communities
Mr Adams said the support of the local community had been crucial since Jemena was awarded the contract to build and operate the pipeline by the Northern Territory Government in late 2015.
“We’ve worked closely with the communities – including Traditional Owners – surrounding the pipeline route throughout the planning phase, having relied on their expertise and local knowledge as we completed key regulatory and other approval processes,” Mr Adams said.
“As we enter the next stage of the pipeline’s development we expect to draw on the skills and talent of local communities, with more than 600 of the NGP’s approximately 900 jobs ear-marked for members of the local community.
“Pleasingly, 58 graduates of Jemena’s Project Ready Training Program – which provides training and development opportunities for local Aboriginal people – have the opportunity to take up full-time employment during construction.”
The NGP will stretch 622 km from near Tennant Creek to Mt Isa in Queensland.
Approximately half of the Territory section of pipeline and most of the Queensland section of pipeline will be constructed this year, with the remaining pipeline to be constructed in 2018.
Jemena has partnered with McConnell Dowell to construct a 481 km section of the pipeline across the Territory and into part of Queensland.
The remaining 141 kms of pipeline in Queensland will be constructed by Spiecapag Australia.
First gas is expected to flow in late 2018.
For more information visit the Jemena website.
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