Jemena has broken ground on its inter-state Northern Gas Pipeline (NGP) project in Australia to be built with an investment of A$800m ($603m).
Spanning 622km, the Northern Gas Pipeline will transport gas sourced from the gas fields in Northern Territory (NT) and supply it to the east coast gas market.
The gas transmission pipeline will be laid between Tennant Creek in NT and Mount Isa in Queensland and is expected to play a vital role in easing the east-coast gas supply crisis.
It has been designed to facilitate transportion of over 700TJs of gas per day.
Jemena Managing Director Paul Adams said: “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 Northern Gas Pipeline 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.”
According to the Australian energy infrastructure company, nearly half of the NT part of pipeline and most of the Queensland part of pipeline will be laid out this year.
The remainder of the Northern Gas Pipeline will be built next year, stated Jemena, with first gas expected to flow through it in late 2018.
For the construction of a 481km stretch of the gas pipeline, Jemena has partnered with infrastructure construction company McConnell Dowell. It will be laid across NT and will cover some area in Queensland.
The remaining 141km stretch of the Northern Gas Pipeline will be built in Queensland by Spiecapag Australia.
Last month, Jemena received the approval to build the first 344km of the pipeline from the NT government. Prior to that in May, it got the green signal from the government to move ahead with the Phillip Creek Compressor Station which will be one of the three facilities of NGP to be built at the Tennant Creek pipeline end.
Image: Jemena begins construction work of the Northern Gas Pipeline project. Photo: courtesy of supakitmod/FreeDigitalPhotos.net.