$800 Million Northern Gas Pipeline (NGP) Begins Construction Today


An official sod turning ceremony will take place today as work commences on the $800 million Northern Gas Pipeline (NGP).

The sod turning ceremony for the Northern Gas Pipeline will take place at the compressor station near Tennant Creek and will be attended by the Northern Territory's Chief Minister Michael Gunnar and Jemena Chairman Nick Greiner.

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The Northern Gas Pipeline will help to transport to the East Coast some of the $20 million worth of excess gas produced in the Northern Territory. Once completed the NGP will play a major role in easing east coast gas supply, and with it, prices.

Northern Gas Pipeline Route

The project will create 900 new construction jobs, of which 600 have been flagged for locals.

Northern Gas Pipeline Jobs

Jemena Managing Director Paul Adams spoke about the Northern Gas Pipeline, stating,

“This project is a boon for businesses that rely on gas as either a feedstock or fuel source by providing them with access to new gas at a cheaper price, particularly when compared to the costs associated with transporting gas over long distances from the Moomba Gas Hub to Queensland and New South Wales,”

“Jemena has already commenced investigative work on expanding the NGP and extending it south from Mt Isa to the Wallumbilla Gas Hub to further integrate Territory gas into the east coast gas grid, provided additional gas supplies are made available in the Territory.”

“The pipeline can be relatively easily expanded and extended to transport up to, or beyond, 700TJs of gas per day.”

“This far exceeds gas used on an average day in the New South Wales and Queensland markets.”

“Pleasingly, 58 graduates of Jemena’s Project Ready Training Program — which provides training and development opportunities for local Aboriginal people — have the opportunity to take up full-time employment during construction of the NGP,”

Northern Gas Pipeline

Despite a turbulent process (documented here and here), McConnell Dowell was awarded the contract to complete the 481 km Northern Territory section of the NGP.

Spiecapag Australia will then construct the remaining 141 km Queensland section of the NGP.

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Source: News Corp,

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