The 150 mm 12 inch pipeline will transport gas between the existing Wickham Point Pipeline and the new INPEX Gas Plant in Darwin.
Design work will commence immediately, with commissioning scheduled to begin in September 2015.
The new pipeline will connect the Northern Territory grid to the under-construction INPEX-operated Ichthys Project, a 889 km, 1,070 mm offshore pipeline stretching to the Ichthys Gas Field in the Browse Basin.
The Ichthys LNG Project equity interest is INPEX 63.445 per cent, TOTAL 30 per cent, CPC 2.625 per cent, Tokyo Gas 1.575 per cent, Osaka Gas 1.200 per cent, Chubu Electric 0.735 per cent and Toho Gas 0.420 per cent.