Jemena’s Northern Gas Pipeline (NGP) project has reached another critical milestone with the Northern Territory Government today issuing a construction and pipeline licence for the $800 million project.
The decision means Jemena will commence construction of the Phillip Creek Compressor Station in under a fortnight, with further construction works on track to start in mid-2017.
Project Director, Jonathan Spink said the NGP will 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. Jemena is also well progressed on a feasibility assessment to expand and extend the NGP to the Wallumbilla gas hub,” said Mr Spink.
Mr Spink said Jemena will 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. 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,” said Mr Spink.
NGP construction schedule
Mr Spink said Phillips Earthmoving – a Tennant Creek based excavation and construction company – has been engaged by Jemena to conduct initial land clearing activities as part of the Phillip Creek Compressor Station build.
A construction partner will then be appointed in both Queensland and the Northern Territory.
“We are well advanced with appointing a construction partner in Queensland and expect to make a formal announcement on this shortly. Following the project’s resequencing in early March, we now have additional time to consider and appoint a construction partner in the Northern Territory and anticipate providing further advice on this process over the coming months,” said Mr Spink.
Jobs for local communities
Jemena’s NGP Jobs and Training Program continues to provide valuable training and employment opportunities for communities along the pipeline route, with Jemena anticipating the project will create more than 900 jobs during its construction phase.
Mr Spink said 45 trainees will soon graduate from Jemena’s Project Ready Training Program in Queensland and the Northern Territory. Upon graduating, trainees will transition into roles on the NGP project.
“Jemena has been keen to ensure local communities benefit from the NGP, and we’re very excited that a number of trainees will soon graduate from our Project Ready Training Program,” said Mr Spink.
“In addition to the Project Ready Training Program, members of the local community who traditionally experience barriers to employment are also contributing to the NGP as part of the Tennant Creek Social Employment Project.”
Mr Spink said local Tennant Creek business, Remote Concrete NT, is delivering the Social Employment Project, which will employ around 10 members of the community to deliver approximately 50,000 timber pipe skids and 90,000 sand and sawdust bags to the NGP.