700 km gas pipeline for Australia’s Northern Territory

Australia’s Northern Territory could be connected via a new gas pipeline to the Eastern Seaboard grid.

The country’s largest gas pipeline company APA Group met Chief Minister Adam Giles earlier to discuss plans to connect the Territory to the main grid, a move that would revolutionise the Territory's gas supply network and open up land-locked gas deposits.

A 700 km gas pipeline

APA Group Managing Director Mick McCormack said a spur line could extend 700 km from the existing Territory gas line at Tennant Creek to Mt Isa in Queensland.

It would cost around Aus$ 500 million to build, he added.

Security of gas supply

The Northern Area Gas Scheme (NORGAS) grid already covers Victoria, Queensland, New South Wales, the ACT and South Australia, so connecting the Territory to this network would provide security of supply.

APA Group has Aus$ 12 billion in assets, more than 14 000 km of pipes and is the largest gas transporter in the nation, piping 50% of all natural gas consumed in Australia.

Australian Pipeline Industry Association reaction

APIA Chief Executive Cheryl Cartwright has welcomed the proposal and said she wants greater assurance for the long-term future of Australian gas by accessing broader supply from a diverse range of sources.

"Projects like this have the potential to unlock the development of Australia's unconventional gas reserves and increase the supply of gas to our largest local markets," she said.

APIA has recommended a technology neutral energy investment policy that eliminates government grants.

The organisation says that would allow renewables, clean coal, gas and other technologies to compete for investment funds through co-investment on the basis of competitive bidding.

Edited from various sources by Cecilia Rehn

Read the article online at: https://www.worldpipelines.com/business-news/18072013/gas_pipeline_australia_northern_territory_396/