Central eyeing NEGI windfall

The EOIs include provision for tariffs to be charged by the proposed North East Gas Interconnect (NEGI) Pipeline. The development follows the closure of the final request for proposals stage for the pipeline, which involved submissions from APA Group, DUET, Jemena and Pipeline Consortia Partners Australia. Central Chief Executive Officer Richard Cottee said the company is in discussions with each of the bidders. “To enable Central to be in a position to execute binding gas sale agreements as soon as possible after the announcement of the NEGI preferred bidder, Central has already initiated work including seeking all necessary regulatory approvals to commence a work-over program by the middle of this month to pressure and flow test targeted gas prone wells,” Mr Cottee said. “Re-evaluation of existing information has been extremely encouraging. “Central has now increased its target of total reserves at Mereenie to 420 PJ; a 50 per cent increase since Central’s original target of 280 PJ was announced on 4 June 2015.” Three main routes have been flagged for the proposed NEGI Pipeline, with one option being a 600 km pipeline from Tennant Creek to Mt Isa at an estimated cost of $A900 million. The second option involves a 1,175 km pipeline from Alice Springs to the Santos-operated Moomba gas plant in South Australia for approximately $A1.3 billion. APA Group has also listed a potential connection between its existing facilities on the Amadeus Gas Pipeline, approximately 40 km north-west of Tennant Creek, NT, and the Carpentaria Gas Pipeline near Mount Isa, Queensland. The successful bidder is expected to be announced soon.

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