Jemema awarded North East Gas Interconnector contract

North East Gas Interconnector (NEGI) – Update

Chinese/Singapore company to build 622 kilometre pipeline from NT to QLD

Jemema awarded North East Gas Interconnector contract

In a recent post about the NEGI, iMINCO reported on how the North East Gas Interconnector (NEGI) project was undecided as to which route it would take.

A couple of days ago, the Northern Territory government selected Jemena, a company owned by State Grid Corp of China and Singapore Power, to build the pipeline that would unlock new gas supplies for the country’s east.

Jemena’s proposed A$800 million, 622 kilometre pipeline project beat rival bids from APA Group, DUET Group, and a Chinese consortium PCP Australia, which included state-owned China National Petroleum Corp.

This new pipeline will bring gas to those populated parts of Australia that would have found great difficulty in the future of securing their energy needs, Northern Territory Chief Minister Adam Giles said in a statement.

The 622 kms (386 mile) pipeline, which Jemena plans to complete in 2018, will route between Tennant Creek in the Northern Territory and Mount Isa in Queensland, a shorter and cheaper route than proposed by the other bidders.

The North East Gas Interconnector:

  • 900 jobs will be created during the construction phase
  • 600 jobs will be created between Tennant Creek and Mount Isa, including 160 jobs for indigenous workers
  • The pipeline will generate about 100 contracts worth $112 million for local businesses
  • Jemena won the contract because it offered the lowest tariffs for piping the gas
  • The pipeline can be scaled up from 14 inches to 18 or 20 if further gas reserves are uncovered before construction begins
  • The NT government has estimated it has over 200 trillion cubic feet of gas, which could potentially power Australia for 200 years
  • All royalties will go towards vocational education and training
  • See the route the pipeline will take from Tennent Creek

The alternative route was to head south to the Santos owned gas hub of Moomba, which would have given more connections to southeastern markets for the Northern Territory’s 230 trillion cubic feet of onshore and offshore gas resources. As reported by iMINCO, the Eastern route through Queensland was cheaper and quicker to build than the other alternatives.

“Going south just wouldn’t have provided the same catalyst to fast track development of the NT’s gas fields,” Jemena Managing Director Paul Adams said in a statement.

The pipeline will bring relief for many as Australia’s major gas producers are draining the current CSG -> LNG resources and are exporting it direct out of the new gas production facilities on Curtis Island, where is heads to Asian markets.

“The NEGI (North East Gas Interconnector) will…ramp up gas supplies to the Australian east coast, where energy-intensive manufacturers need alternatives to the currently expensive alternatives,” Incitec Pivot Ltd Chief Executive James Fazzino said in an emailed statement.

For further information read the Chief Minister`s media release or visit onshoregas.nt.gov.au for a range of factsheets on the project

Jemena jobs for this project – $112 million local contracts

During the planning, construction, and commissioning phases, Jemena will create up to 600 jobs for locals and offer up to 100 contracts for local businesses, worth around $112 million. It also expects to staff ongoing operations and maintenance teams at both Tennant Creek and Mount Isa from local the workforce.

About Jemena

Jemena owns and operates a diverse portfolio of energy transportation infrastructure across eastern and northern Australia. These include the Queensland Gas Pipeline, which delivers gas to the industrial hubs of Gladstone & Rockhampton, the Eastern Gas Pipeline, which provides over half of the gas used in NSW from Bass Strait, and the NSW gas distribution network, supplying more than 1.3 million customers.

Jemena research for job seekers

Go to the Jemena website to read further in-depth information on how they plan to build this pipeline.

Find out about careers at Jemena; where you can submit applications online as well as subscribe to their jobs feed (highly recommended)

Keep up to date with Google search results on the project: “Jemema awarded North East Gas Interconnector contract” or “North East Gas Interconnector jobs” or “Jemena jobs North East Gas Interconnector”. This is the only way to keep ahead of the competition when applying for jobs on the project.

“Jemena is proud to announce it has been selected by the Northern Territory Government to build and operate the North East Gas Interconnector (NEGI), connecting the Territory`s vast gas fields to the east coast gas market.”

“Jemena is also investing in training programs, Indigenous apprenticeships and a new Indigenous social enterprise in Tennant Creek to provide support services for construction and road maintenance projects in the area”
iMINCO Project News

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