Pipeline owner Jemena has been forced to reduce the size of a new $800 million pipeline it will build to join the Northern Territory into the national gas grid by about a quarter after resource developers were deterred by the lack of bipartisan support for onshore drilling.
The North East Gas Interconnector (NEGI) line will be able to carry just 90 terajoules a day of gas through a 12-inch-diameter pipe, instead of the 120TJ/day through a 14-inch pipe that was anticipated when Chinese-controlled Jemena won the contract from the NT government in November.
"There just isn't enough gas to justify anything bigger than a 12-inch pipeline at this stage," Jemena head of business development Antoon Booey said.
"When we were awarded the business in November last year we had an expectation there would be more gas available to be transported, but since late last year there's been a real lack of interest to contract with us for gas transportation agreements."
CTP Price at posting:
9.5¢ Sentiment: None Disclosure: Not Held
