Northern Gas Pipeline given green light for construction

The Northern Gas Pipeline (NGP) project has reached another critical milestone with the Northern Territory Government this week issuing a construction and pipeline licence for the $800 million project.

The decision means Jemena will commence construction of the Phillip Creek Compressor Station within the fortnight, with further construction works on track to start in mid-2017.

Project director Jonathan Spink said the NGP would play a crucial role in helping to resolve Australia’s gas supply crisis by connecting Northern Territory gas fields with the east coast.

“This is good news for east-coast gas customers who will soon benefit from additional NT gas flowing into Queensland,” Mr Spink said.

“Jemena is also well progressed on a feasibility assessment to expand and extend the NGP to the Wallumbilla gas hub.”

Mr Spink said the company would be able to quickly scale-up the NGP to deliver up to or beyond 700TJ of gas per day to the east coast, dependent on demand.

“Once it’s built, Jemena will be able to easily increase the capacity of the NGP by either looping the pipeline or adding additional compression to it,” he said.

“This can be done much more efficiently and quickly than constructing a new pipeline, with the viability of the pipeline route having already been tested and cleared.

“For these reasons the NGP continues to be the cheapest and most direct route to deliver gas to where it is needed most and is the sensible choice in responding to the east coast gas crunch.”