The Jemena operated $800 million Northern Gas Pipeline Project (NGP) continues to progress smoothly, with a number of critical milestones being reached in recent weeks.
Jemena’s managing director, Paul Adams, said the final length of line pipe required for the NGP was delivered to Darwin last week, while Jemena is also well advanced with preparatory works as part of the construction of the NGP.
Mr Adams also stated that Jemena has today appointed a construction partner for the Territory, and part of the Queensland, portion of the pipeline.
“Jemena has now finalised paperwork to reappoint McConnell Dowell, which means they will construct 481km of the 622km long pipeline,” said Mr Adams.
“McConnell Dowell has been a key partner to Jemena since 2015, having worked closely with us as part of the initial tender for the project. We’re confident they have the right skills and experience to ensure the project’s success and we are pleased to have reappointed them today.”
Mr Adams said the NGP’s re-sequencing in early March saw Jemena re-evaluate and ultimately release McConnell Dowell from its contractual obligations until such time as land access negotiations and other approvals were finalised.
“With land access arrangements agreed across much of the Territory, we now have the certainty we need to appoint McConnell Dowell to construct this section of the NGP.”
McConnell Dowell CEO Scott Cummins said the construction and engineering company was very pleased to partner with Jemena to construct the NGP.
“We’ll be bringing our industry leading experience in the delivery of cross-country pipeline projects to bear, in order to get work underway as soon as possible,” said Mr Cummins.
Mr Cummins joined Mr Adams at a formal signing ceremony in Melbourne this morning.
A construction partner for the remaining 141km in Queensland will be appointed shortly.
Mr Adams said the project also forms an important part of Jemena’s Northern Growth Strategy which seeks to develop an interconnected supply chain of energy delivery assets across Northern Australia.
“Jemena is keen to scale up the NGP and extend it further east to link in with the Wallumbilla gas hub in Queensland. Our feasibility study has found that once sufficient gas is shored up in the Northern Territory, the NGP can be expanded to deliver more than 700 TJ of gas per day if required.”
Jemena was selected by the Northern Territory Government to build and operate the Northern Gas Pipeline in late 2015. The 622km pipeline will connect Northern Territory gas fields with the east coast gas market for the first time.