The Government has agreed with the Nick Xenophon Team to ensure that there is adequate gas supply in Australia for the domestic market, including an investigation into the new gas pipeline, and review of gas retention policies.
A report will be given to Parliament by 1 June and made public on 15 June.
Prime Minister Malcolm Turnbull said “We have our made our commitment to ensuring that there is adequate gas supplies in Australia for the domestic market, and confirmed that if the industry does not respond with the supplies that the market needs, we will use our authority, our power over exports to ensure that adequate gas supplies are available.”
Jemena, who is building the 622 km, 14 inch diameter Northern Gas Pipeline which will link Tennant Creek in the Northern Territory to Mt Isa in Queensland, is reported as stating that a second pipeline from the Northern Territory to South Australia “doesn’t add up”.
The AFR has quoted the company as saying that Jemena had previously examined a similar route as part of its bid to build the Northern Gas Pipeline in 2015, but found the most economic route to be via Mt Isa.
