MCCONNELL Dowell has been named construction contractor for the North East Gas Interconnector (NEGI) pipeline, saying its work would be worth over $300 million.

In an announcement, McConnell Dowell said its contract would include building the 623 kilometre high pressure gas pipeline as well as two compressor stations and gas treatment facilities.

Linking the Northern Territory town of Tennant Creek to Mt Isa in Queensland, the pipeline is expected to cost about $800 million overall.

McConnell Dowell said it had been working with Jemena throughout the tender process to increase local and Indigenous participation in the delivery and ongoing management of the pipeline, engaging with communities along the way.

McConnell Dowell executive general manager pipelines Jim Frith said this approach had helped it and other project partners and stakeholder to provide optimised solutions for the project.

“We look forward to project execution so we can play our part in delivering the full benefits of this project to the community and other project partners,” he said.

“The project is an important addition to our significant track record of successful major pipeline and mechanical infrastructure delivery.”

Construction is expected to be completed by 2018 and, once completed, the NEGI pipeline will be known as the Northern Gas Pipeline (NGP), McConnell Dowell said.

GPA Engineering has been awarded the pipeline design contract, while MRC Global has won a contract to supply 636 kilometres of X70 grade high-pressure coated pipe and induction bends for the pipeline.