“The construction of this gas pipeline is an infrastructure project of national significance. It’s also a matter of urgency for the eastern states which are fast approaching an energy security crisis,” Northern Territory Chief Minister Adam Giles said. “We have the gas and they have the demand but there is currently no economically viable way to get the gas from Northern Australia to the eastern market.”
The pipeline is deemed necessary due to the looming shortage of natural gas available for domestic use on the east coast of Australia following the commitment of gas reserves to LNG projects being developed in Queensland; and, gas exploration moratoriums introduced by governments in the east coast states of New South Wales and Victoria resulting from community reaction to coal seam gas development within these areas. There is currently no infrastructure connecting gas within the Northern Territory to the east coast states to ease the burden of supply.
The Northern Territory Government set to hold an industry briefing in Alice Springs on 31 October 2014 to explain the project to potential investors.
“In Alice Springs later this month, I have asked our consultant, Port Jackson Partners, to run a briefing for gas and infrastructure companies, as well as other industry figures interested in being part of this nationally important project,” Mr Giles said. “In a sign of the national significance of this project, Australian Federal Industry Minister Ian Macfarlane has agreed to join this industry briefing.”
Australia’s largest pipeline owner APA Group has proposed two routes for the development of the pipeline, and is currently undertaking preliminary assessment of several possible pipeline routes along with detailed engineering. One option is an 800 km pipeline from Tennant Creek in the Northern Territory to Mt Isa in Queensland at an estimated cost of $US784 million, with the second being a 1,000 km pipeline from Alice Springs in the Northern Territory to the Santos-operated Moomba gas plant in South Australia for approximately $US1.1 billion.
Mr Giles has said that the Northern Territory Government will accept proposals from companies for both of these routes, or any other route that industry would like to propose linking the Territory and east coast gas grids.