Jemena Managing Director Paul Adams has warned that Northern Territory Labor’s proposed moratorium on hydraulic fracturing is creating uncertainty in the industry.
The Australian Financial Review reports that Mr Adams said potential users of the company’s Northern Gas Pipeline risked being spooked by the opposition’s stance on onshore gas development.
“It’s not going to stop the project but it will just slow things down,” Mr Adams said.
“We’ll get there in the end, it’s just how long it will take us.”
NT Labor Leader Michael Gunner has previously said there is enough gas available for the pipeline to go ahead without the need for further development onshore.
“It has always been clear that the excess gas from ENI and future supplies from Mereenie and future offshore supplies are what you need to build your business case around the pipeline on,” Mr Gunner said.
Meanwhile, NT Chief Minister Adam Giles has blamed the proposed moratorium for the loss of 140 jobs at Pangaea Resources in Central Australia.
“Labor hasn’t even implemented its anti-development agenda and it’s already costing Territorians their jobs,” Mr Giles said.
“The onshore gas industry is just too important and too critical to our economic future to be closed down.
“The NT’s past, present and future is powered by gas. The industry is properly regulated to protect the environment and the Government is continuing to strengthen that process.”
The proposed 622 km Northern Gas Pipeline will connect Tennant Creek in the Northern Territory to Mt Isa in Queensland.
Construction on the pipeline is scheduled to commence in 2017, with commissioning expected in 2018.
McConnell Dowell has been selected as the construction contractor for the pipeline.
