Plans unveiled for $1bn NT gas pipeline
THE Northern Territory's largest onshore gas producer has unveiled plans to build a 950km pipeline costing more than a $1bn that will supply gas from the NT's Amadeus gas basin to Sydney and other east coast markets.
Central Petroleum Ltd, which has oil and gas at Mereenie in the Palm Valley and Dingo fields for domestic customers in the Northern Territory, says the pipeline will be built and operated by the Australian Gas Infrastructure Group
AGIG chief executive Ben Wilson said an MOU for the development of the new pipeline had been signed with Central Petroleum and Macquarie Mereenie. It will carry gas from Mereenie to Moomba, which is a key part of the gas supply chain to the east coast.
Central Petroleum director and chief executive Leon Devaney said the partners were seeking to be foundation customers of the proposed Amadeus to Moomba Gas Pipeline project. He said 2021 was the target for a final investment decision, with construction planned from 2022.
"This is an extremely exciting opportunity to help increase the supply of gas from Central and Northern Australia to the southeast gas markets, mitigating gas shortages forecast from 2024," he said.
"Increased, more cost-efficient gas supply to users in the southeast can only help the delivered price of gas to the east coast. A new, more efficient route to domestic markets will also increase the viability of broader gas exploration and production within onshore NT gas reserves, where there is enormous untapped potential."
Mr Devaney said the AMGP could be a stimulus for significant capital investment, ultimately generate jobs and benefit the NT economy through production royalties.
"We're currently working on increasing our production potential and further exploration to have further gas supplies ready to send to east coast customers through the AMGP, as we work with AGIG and Macquarie on FID milestones," he said.
"There's currently an active national conversation about domestic gas supply, with many alternative proposals to supply more gas to the east coast.
"We strongly believe the AMGP proposal is by far the most practical and realistic option to address supply concerns from 2024."
Originally published as Plans unveiled for $1bn NT gas pipeline