Our Gas to the Eastern states becoming a reality

NT moves on Moomba pipeline

Maher, Sid
The Australian
13 Oct 2014

THE Northern Territory government will today call for formal expressions of interest to build a gas pipeline from Alice Springs to Moomba, which could ease NSW's looming gas shortage and revolutionise the domestic gas market.
Northern Territory Chief Minister Adam Giles told The Australian he wanted the expressions of interest process finished by the end of the year and he was confident construction could start as early as 2016.
Mr Giles is keen to push environmental assessments through in 12 to 18 months to allow construction to begin quickly.
The pipeline has a window of opportunity later this decade as NSW faces a gas shortage due to the start of the LNG export market in Queensland and community opposition in NSW to coal-seam gas extraction.
Mr Giles' decision to go ahead with the EIS announcement came after a meeting with Industry Minister Ian Macfarlane yesterday on the pipeline proposal.
The Council of Australian Governments meeting in Canberra on Friday endorsed the pipeline and Mr Giles is pressing the government to make it a project of national significance, which would ease regulatory impediments.
"This project will provide jobs and infrastructure for the Northern Territory and particularly indigenous communities," Mr Giles said.
He said the expressions of interest would be for companies to build and operate the pipeline. He plans to hold a full briefing for industry in Alice Springs on October 31. He said proponents would have to identify sources of paying customers to make the pipeline bankable. After expressions of interest were finalised, the route of the corridor would also have to be identified.
Mr Giles said the Northern Territory government would work with Geoscience Australia to help identify the best route.
He believed the NSW government was supportive of the project and he predicted the pipeline could change the face of the domestic gas market.
The Australian understands that the pipeline could meet up to 40 per cent of the NSW gas shortfall, which begins to grow after 2017. The pipeline could also reduce pressure on gas prices, which are predicted to rise as exports come on line and supplies in NSW and Victoria tighten.
Last week Manufacturing Australia called for COAG to instruct the Australian Energy Market Operator to set up a Moomba gas trading hub to create a domestic spot market for gas.
The Northern Territory government commissioned an analysis on the business and economic case by Port Jackson Partners for the pipeline link, which found it was a viable proposal. Two routes are favoured for the pipeline, a 700km northern route from Alice Springs to Tennant Creek near Mount Isa and a southern route from Alice Springs to Moomba. The southern route would span 1100km and cost more than $1.2 billion. However, the southern route has the advantage of boosting gas supply to the east coast market and is believed to be favoured by the NT government.