http://www.ntnews.com.au/news/north...s/news-story/3cd542c42e6e9e10d0f4495ec77b72b4
Northern Territory
puts second gas pipeline on table as South Australian energy crisis looms
EXCLUSIVE, NT News
an hour ago
A SECOND new gas pipeline from the Northern Territory could help prevent a looming energy crisis in South Australia, according to Chief Minister Adam Giles.
In recent days, the South Australian government has had to fire up the mothballed, privately-owned Pelican Point gas-fired power station, amid warnings of heavy industry shutdowns because of a lack of affordable power.
In May, South Australia closed its last coal-fired power station, and now produces 40 per cent of its power needs from higher cost, less reliable renewable sources.
Mr Giles said yesterday a pipeline from Central Australia to Moomba could help secure the future of South Australia’s heavy industry.
The pipeline was considered as an alternative to the Tennant Creek to Mt Isa pipeline, which itself aims to bolster supplies on the eastern seaboard.
“A national energy summit should also consider connecting the Northern Territory to the national electricity grid and the possible construction of a second gas pipeline from Central Australia to Moomba,” Mr Giles said.
Studies seen by the
Territorian put the cost of such a pipeline at about $1.2 billion. Challenges include crossing long sections of isolated sand dunes. But Mr Giles said it should be considered as a nation-building project. “The nation can’t afford to see heavy industry shut down because of crippling power prices and uncertainty over supply,” he said.
He said the project could happen as part of the federal government’s Northern Australia agenda, adding South Australia’s energy problems highlighted the need for a more measured transition towards renewable energy. He said NT gas would provide low-emission, low-cost energy.
The Territory’s onshore gas industry, if developed, is estimated to be worth as much as $22.4 billion between 2020 and 2040, with as much as $1 billion worth of royalties to go to the Territory Government and 6300 long-term jobs.
Mr Giles said Labor’s proposed fracking moratorium “sold out” those job prospects, as well as the security of Australian heavy industry.
Two energy studies, commissioned by the Territory Government, are due for release in coming weeks.
One will explore the potential construction of a gas-to-liquids plant in the Northern Territory while the other will explore broader issues of local and national energy security.
