Tag Archives: Northern Gas Pipeline

Gas to soon start flowing for Mount Isa miners as NGP opens up

Energy company Jemena has completed the 622 km Northern Gas Pipeline (NGP), opening up the supply of gas from the Northern Territory fields to Mount Isa in northwest Queensland, Australia.

The gas is to be used as a crucial feedstock by local businesses – including Incitec Pivot’s Phosphate Hill and Gibson Island facilities, as well as mining and other commercial operations throughout Queensland’s northwest, Jemena said.

Jemena’s Managing Director, Frank Tudor, said around 80% of the NGP’s capacity has been contracted; testament to the real need for additional gas across Australia’s east coast.

“Today we have taken a significant step towards ensuring Australian homes and businesses have the gas they need, when they need it,” Tudor said.

“I commend the Northern Territory Government for commissioning the NGP project in 2015 and am proud that the territory is now well-placed to become the home of Australia’s gas industry alongside Queensland.

“We know that the Northern Territory has enough gas to meet Australia’s future supply needs for the next 200 years or more, and our pipeline is the crucial, missing, link that will connect this gas with Australian homes and businesses.”

Tudor said Jemena was well-advanced in planning the expansion and extension of the Northern Gas Pipeline so that it further integrates with the east coast gas market.

“Provided gas is proven as commercially viable in the Northern Territory, Jemena will be able to increase the NGP’s capacity from around 90 TJ/d up to 700 TJ/d. To put this in context, this is enough gas to meet the average daily gas needs of Sydney, Brisbane, and Adelaide combined.”

The NGP’s commercial operations are targeted to commence between December 29 and January 10, Jemena said.

Mount Isa miners to benefit from NGP gas following Jemena/Santos deal

Miners in the Mount Isa region of Queensland, Australia, look set to benefit from a new supply of power, after energy infrastructure company, Jemena, signed a transportation contract with Australia power producer, Santos, to ship gas across the new Northern Gas Pipeline (NGP).

The contract, which means around 80% of the NGP’s total available capacity in year one is spoken for, will see Jemena ship around 8 TJ/d of gas across the 622 km pipeline.

The A$800 million ($580 million) NGP, which will connect Tennant Creek in the Northern Territory with Mount Isa in Queensland, is still in construction. First gas from the 92 TJ/d facility is scheduled to flow in late 2018.

The agreement with Santos comes after Jemena announced it had signed a contract with Incitec Pivot Limited (IPL) to deliver 32 TJ/d of gas to IPL’s Gibson Island facility in Queensland. This facility makes up one half of IPL’s Brisbane operations (the other being its Pinkenba site), which produce ammonia, urea, CO2 as well as granulated fertiliser products.

Jemena’s Executive General Manager of Corporate Development, Antoon Boey, said the new agreement will see Jemena transport gas for three years from the first day of commercial pipeline operations for Santos.

“This agreement provides more much-needed gas to the mining and processing sector in the Mount Isa area, and is a positive for the local community, who will benefit not only from jobs which rely on gas as a direct feedstock, but from the flow-on effects of having a vibrant local economy and industry,” he said.