White Paper on Developing Northern Australia Released 18 June
Extracts re North East Gas Connector
Page 8
Most northern infrastructure is funded by business (such as the resources industry) or by charging users (such as electricity generation). Businesses can determine where and how much infrastructure needs to be built based on an assessment of what users are prepared to pay for. But to fast track growth in the north, the Commonwealth Government is providing a new $5 billion Northern Australian Infrastructure Facility to provide concessional loans for the construction of major infrastructure such as ports, roads, rail, pipelines, and electricity and water supply.
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expanded energy networks including connecting the north’s gas resources with east coast markets, and delivering cost competitive energy to projects in the north
Page 90
In regard to gas, both onshore and offshore areas across northern Australia are largely under explored, with good potential for further discoveries. In addition, technological advancements, such as floating LNG, and increased geographical knowledge are making known resources more viable. The proposed North/East Gas Interconnector being advocated by the Northern Territory Government to connect with Australia’s eastern natural gas market will be an opportunity to test the gas market’s appetite to grow the industry. Such a link has the potential to contribute to a more efficient gas market through infrastructure that links markets, builds resilience and enables new gas resources to be developed.
undergone substantial development over the past 20 years, transitioning from an isolated and self-sufficient market to one linked to high value international gas markets. While some of this reform has been mirrored in the unconnected northern and western gas markets, more work is required in this area. Linking markets will assist in facilitating reform across the sector if commercial realities support the development required to achieve this aim
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North East Gas Interconnector — the Request for Initial Proposals closed on 2 March 2015. Nine responses were received and evaluated by an expert panel comprising of two private sector members and two senior public servants. Four proponents were subsequently selected to participate in the final stage of the competitive process, the Request for Final Proposals stage will close in September 2015 with a successful proponent being announced shortly thereafter.
My Opinion – the Southern Route for the pipeline may have difficulty accessing the infrastructure funding as the route of the pipeline does not fall within the geographical area of Northern Australia the subject of White Paper.
Govt White Paper on Developing Northern Australia - Bias towards Mt Isa Pipeline Route
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