Key link in Northern Gas Pipeline complete

Northern Gas Pipeline, jemena

A key link in Jemena’s Northern Gas Pipeline has been completed today, and is set to begin commercial operation in less than a month.

The 622km pipeline will transport gas from Northern Territory gas fields to Mount Isa in north-west Queensland.

APGA chief executive officer Steve Davies said pipeline owner and operator Jemena had provided local businesses with many opportunities during construction of the 622km Northern Gas Pipeline between Mount Isa and Tennant Creek.

“Importantly, the tight conditions in the east coast gas markets may be somewhat eased because of this injection of supply,” Mr Davies said.

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“With the NGP, Jemena has assisted Australia’s homes and businesses to have the gas they need.

“The delivery of this energy to the east coast is important. Most people don’t realise that gas provides more usable energy than electricity. If we don’t have gas, we have a problem.

“The most recent statistics show that in 2016-17, natural gas provided 911 petajoules of energy compared to electricity’s 820 petajoules.

“With 80 per cent of the NGP’s capacity already contracted, Jemena is already planning for the future, considering expanding and extending the pipeline so that it might carry more than seven times the current volume in future, depending on proven gas reserves in the Northern Territory.

“Gas pipelines continue to provide efficient, flexible and valuable services to the economy. While the distances gas is being transported is increasing, transmission costs remain a small percentage of gas bills for industrial, commercial and residential consumers.

“APGA and its members look forward to more successful projects like this one as they ensure that gas has a bright future in Australia and that the pipeline industry is well-placed to meet future requirements.

The project drew criticism last month when the Institute for Energy Economics and Financial Analysis (IEEFA) and Environmental Justice Australia (EJA) lodged an amendment with the Australian Energy Market Commission, accusing Jemena of using a derogation of Part 23 of the gas rules to price gouge.

Jemena vehemently denied the claims.