How very interesting.
Jemina came up with a cheap (to government) proposal and they took it. Then Jemina down-sized the pipe so it cannot serve to solve the East coast gas supply crisis - quite apart from whether there is enough "proven" gas to send down it.
Now the NT government wants a fat pipe Alice - Moomba pipe anyway. It is, of course, the better solution. They probably should have deferred the announcement until Jemina began laying pipe, but hey.
If I were Jemina, I would spit the dummy about now and walk away in a huff. Their monopoly position as the sole transit pipe will be lost, and the pricing power that would have gone with it.
Ladies and gentlemen, we have just lost 2 years. From NEGI announcement in November 2015 to now is 8 months, then a re-tendering process, 6 months. Then a longer construction phase as the distance and technical complexity are greater. I'd say first gas to Moomba 2020. Perhaps a pipe-layer can offer us a deeper analysis.
Ash
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