The NEGI will be a 623 km pipeline that will link Tennant Creek in the Northern Territory (NT) to Mt Isa in Queensland, opening up supply lines between NT and the east coast gas market. The final project is valued at approximately AU$800 million.
Jemena was announced as the operating contract winner on 17 November in a decision welcomed by the Australian Pipelines and Gas Association (APGA) and the Australian Petroleum Production and Exploration Association.
At the contract announcement Paul Adams, Managing Director of Jemena, said that Jemena’s ownership of the NSW gas network played a critical part in the company being awarded the contract over other bidders such as APA Group.
McConnell Dowell, who supported Jemena throughout the tender process, will continue working on NEGI as the agreed construction contractor. The value of construction work is expected to exceed AU$300 million.
Jim Frith, Executive General Manager of pipelines at McConnell Dowell, said “The collaborative Early Contractor Involvement approach adopted by Jemena has assisted McConnell Dowell and other project partners and key stakeholders to work together to provide optimised solutions for this project.
“We look forward to project execution so we can play our part in delivering the full benefits of this project to the community and other project partners.”?
The construction phase of NEGI is expected to be completed by 2018. Once the pipeline is in operation it will be known as the Northern Gas Pipeline (NPG).