Source: Ashley Manicaros NT News

THE constructors of the Northern Gas Pipeline have signed a deal which will see the 622km project extended through Central Queensland.

The NGP will transport Northern Territory gas from Tennant Creek to Mt Isa in Queenslaand. The $800 million project is underway.

Jemena announced on Tuesday it will now fast track plans to connect to the east-coast gas market after signing a binding agreement with Galilee Energy Limited to deliver a large new source of gas from the Glenaras Gas project in the Galilee Basin.

Jemena’s executive general manager of corporate development, Antoon Boey, said large new sources of gas need to be produced and delivered to the market as quickly as possible.

However, the earliest it could reach market is 2022.

“By undertaking the early planning works, both Jemena and Galilee Energy will be ready to proceed to front end engineering and design on both pipeline and field development in 2019 with the objective of first gas to market in 2022,” he said. ”

Mr Boey said the announcement marks another key step in Jemena’s plans to expand and extend its NGP.

Galilee Energy’s managing director, Peter Lansom said his company had one of the largest “uncontracted contingent gas resources” on the east coast.

“This partnership is all about working together to get this critical gas supply option to the domestic market as quickly as possible,” he said.

The NGP is expected to create around 900 jobs, with first gas through the pipeline expected to flow in late 2018.

Excess Power and Water gas from the Blacktip field will be the first product through with forecasts up to 100Tj a day will be shipped.

A 10-year deal has been signed with Incitec Pivot to take the first gas.

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