NT Government considers $60m to boost gas pipeline
By James Oaten
Updated 52 minutes ago
Workers build a gas pipeline in Queensland
PHOTO: The NT Government wants Jemena to build a gas pipeline that is 14 inches in diameter. (ABC Rural file photo)
RELATED STORY: Diameter of Tennant Creek-Mt Isa gas pipeline reduced
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The Northern Territory Government will consider pumping millions of dollars into increasing the volume of a gas pipeline connecting the NT to Queensland, Deputy Chief Minister Peter Styles says.
Mr Styles said industry figures suggested $60 million could help company Jemena build a 14-inch diameter pipeline connecting Tennant Creek to Mt Isa instead of its preferred option of 12 inches.
"We've been in touch with the Chamber of Commerce about sitting down with the Chamber of Commerce and stakeholders to consider whether the Government might be able to contribute something towards this pipeline," Mr Styles said.
The comments come despite Chief Minister Adam Giles saying on Saturday that he had no intention of putting any government money into the pipeline project.
Mr Styles refused to say where the $60 million figure had come from.
"My understanding is that industry figures are talking around about $60 million," Mr Styles said.
Both Jemena and the peak oil and gas lobby group APPEA have told the ABC the figure is not theirs.
The Deputy Chief Minister's comments comes after Jemena announced it would build a thinner-than-hoped pipeline due to a lack of business prospects and a tight 2018 deadline.
Another problem facing the Government proposal is that Jemena has already purchased the steel required to build a 12-inch diameter pipeline and changing that could prove unfeasible.
"We believe we have sized the pipeline appropriately for the amount of gas there is available," a Jemena statement said.
"But we'd be happy to sit down to explore options with any parties who have an interest in building a larger pipeline."
http://www.abc.net.au/news/2016-04-04/nt-government-considers-60m-boost-to-gas-pipeline-size/7296192
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