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NT Gas pipe line going ahead

Posted: 14/04/2015 12:17:43 PM by Mining Oil and Gas Jobs
Filed under: Mining

The Northern Territory Chief Minister has added new hope to the planned gas pipeline to the eastern states of Australia by his huge announcement that the pipeline is now pretty well a done deal. He added that there will be huge new emerging possibilities and that his own Northern Territorians will benefit by less expensive house gas costs.

Originally nine submissions to construct this big undertaking were received when called by the NT government and this number was eventually filtered down to four bidders in the last six weeks – SGSP Assets, DDG Operations, Merlin Energy Australia and APA Group.

The final decision on which submission will be accepted should be made by December 2015.

The timeline would then follow a course of the project having to satisfy all environmental requirements by 2017. Following on from that approval construction would commence with a likely completion date prior to the 2019 year.

The project itself is not totally a new build but incorporates the connection of over 2200klm of the pipeline already in place in the NT to the existing eastern states grid which spans over 7500klm. Experts have judged that the most efficient pathway for the pipeline in through Mount Isa or Alice Springs.

The Federal Government is not required to play a significant role in this development project according to the Chief Minister after an examination of the details of the proposals from the four submitting companies. The add on costs to the NT government have not yet been itemised.

The Chief Minister was quoted as saying “The quality of the submissions through the government’s competitive process for the pipeline’s construction has been so high that we now feel it is inevitable that this pipeline will be built”

He added “The submissions give us confidence that this project is seen by the private sector as being commercially viable, and that the focus of government support will be around facilitating approval processes. Put plainly, the numbers seem to be stacking up.”

The NT pipeline will generate employment in regions and also in outlying country areas. Because there is significant construction involved there will be jobs in construction and engineering and other traditionally mining oil and gas related fields.

As to whether a gas supply from fracking would be involved in the process the Chief Minister advised “The first tranches of gas for this pipeline are expected to come from existing offshore and onshore fields giving us the time to get the regulatory environment right for an expanded industry into the future,”

According to NT government sources the extent of the reserves of gas in the Northern Territory were so great as to be able to ensure a supply which would provide Australia’s total power needs for over 150 years

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