Jemena announces gas transportation contract

Jemena has announced a new gas transportation contract with Incitec Pivot Limited (IPL) for the $800 million Northern Gas Pipeline (NGP).

The new agreements will see at least 32TJs of gas transported per day.

Jemena’s agreement with IPL is in addition to its 2015 agreement with the Northern Territory’s Power and Water Corporation to transport 31TJs of gas to IPL’s Phosphate Hill facility for 10 years.

Jemena acting managing director Antoon Boey said gas from the new agreement would supply IIPL’s Gibson Island facility in Queensland.

“This announcement reinforces the leading role the Territory’s gas industry can play in creating and sustaining jobs in northern Australia,” Mr Boey said.

He said the new agreement with IPL would see the manufacturer access an additional 32TJs of gas per day from the expected commencement of the NGP’s commercial operations in December 2018 to December 31, 2019, with an option for extension.

“We have had a fantastic relationship with IPL, and are thrilled this additional gas will support IPL’s operations on Gibson Island, which employs a workforce of more than 400 staff during normal operation and up to 800 staff during peak periods.”

“This gas gives much-needed certainty to IPL, and is a positive for the people relying on the Gibson Island facility, who will benefit not only from jobs which rely on gas as a direct feedstock, but from the flow-on effects of having a vibrant local economy and industry.”

The new partnership means Jemena has contracted volume on the NGP to 70 per cent of what will be its total available capacity in year one of its operations.

“Discussions with other parties are also well advanced, and we remain confident that NGP will be fully contracted by the time it is operational later this year,” Mr Boey said.

Construction of the NGP is tracking to schedule, with first gas to flow late this year.