Northern Gas Pipeline out of service for months

The Northern Gas Pipeline (NGP) which connects Northern Territory (NT) gas to the east coast, is expected to be closed until June 2024.

Gas flows along the Northern Gas Pipeline ceased in early February due to an upstream supply constraint.

“We’re working closely with key stakeholders including the NT Government and the NT Gas Taskforce in response to this evolving situation,” a Jemena spokesperson said.

“While the NGP is not operating we understand arrangements have been made to ensure the gas needs of customers in Mount Isa continue to be met. We do not see the supply shortage as impacting the long-term operation of the NGP.”

According to Central Petroleum chief executive officer and managing director Leon Devaney, the NT gas market is clearly undergoing a transitional phase as offshore production into the NT gas market has fallen to less than half of that produced just two years ago.

“Central, and its joint venture partners in the Southern Amadeus Basin, are more relevant than ever to the NT’s future gas supply portfolio given we represent local production and jobs, generate NT and Traditional Owner royalties, have proven to be a reliable supplier, and are cost competitive against current alternate gas supplies, such as LNG or imports from other states,” he said.

During this outage, gas cannot be delivered to east coast customers, although as with previous outages, Central continues to supply gas to its customers in the NT.

At present, the Mereenie JV has reduced sales volumes by approximately 13.6 terajoules/day (TJ/d) and is working with key NT stakeholders and customers to re-contract this gas to NT customers for the duration of the outage.

The Northern Gas Pipeline (NGP) is a key component of Jemena’s northern growth strategy which seeks to build an interconnected supply chain of energy delivery assets in northern Australia through targeted acquisitions and greenfield developments.

It is a 622km gas transmission pipeline between Tennant Creek (NT) and Mount Isa (QLD).

It is owned and operated by Jemena Northern Gas Pipeline. The NGP, which links the formerly separate northern and eastern gas markets, started commercial operations in January 2019.

The main purpose of the NGP is to provide a pathway to transport gas from production facilities in the Northern Territory to demand centres in Mount Isa and eastern Australian states.

Central will provide further updates regarding the NGP outage as they become available.

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