ALICE Springs will be the hub for one of the country’s biggest construction projects if a Chinese consortium is selected to build a gas pipeline connecting Central Australia with the eastern seaboard.
China’s largest oil producer, PetroChina, is part of Pipeline Consortium Partners of Australia (PCPA) — the first of four bidders to declare a preference for building from Alice Springs to Moomba.
If selected, it’s understood construction would start simultaneously at Hermannsburg and Moomba, with headquarters in Alice Springs.
The group has held talks with traditional landowners and pastoralists about native title and access issues.
PCPA director Diana Shen said Alice Springs was a natural hub for Territory gas going south and east.
“This route gives us access to diverse gas markets in eastern Australia and offers the best prospects of bringing forward exploration and production of significant gas reserves in the Northern Territory,” she said.
“Alice Springs will play a key support role to the Moomba option, with a project office, jobs and local contracts all bringing substantial benefits to the Territory.”
At an industry briefing in Alice Springs yesterday, PCPA said the Alice Springs route would deliver greater benefits than going from Tennant Creek to Mount Isa “because it links directly to high-demand markets on the east coast”.
“Selection of the southern route will ensure the benefits of the project flow to the Territory, with the consortium based in Alice Springs rather than Mount Isa,” the briefing was told.
“This option is a larger investment in a longer pipeline that will deliver more long-term benefits to the Territory.”
PCPA is led by China Petroleum Pipeline International, a subsidiary of state-owned China National Petroleum Corporation Group, of which PetroChina is a listed subsidiary trading in New York, Hong Kong and Shanghai.
PetroChina owns and operates the 4000km West-East Gas Pipeline across China, passing through 66 cities in 10 provinces.
The proposed 1000km Australian route will link to the Amadeus Pipeline and Central Petroleum’s Mereenie gas fields, travel down the Old South Road to Finke, then cross South Australia past Oodnadatta to Moomba.
“We will work with the Northern Territory Government and community to deliver a project that meets our mutual environmental, social and economic objectives,” she said.
If selected, PCPA will contract Australian companies to build the project, led by Monadelphous KT.
Monadelphous KT has delivered projects for pipeline owners, oil and gas companies and mining companies throughout Australia and overseas.
Potential work packages available to local companies include pipe haulage, general transport, equipment hire, surveying, camp accommodation, accommodation in Alice Springs, camp services such as catering and cleaning, medical and maintenance services, buses and specialist welding services.
The consortium has engaged Aboriginal-owned Territory contractor Rusca Bros to employ and train Aboriginal people.
If the consortium’s bid is successful, PCPA has said it will invite investment from Australian companies.
A decision on the successful bidder is expected by the end of this year.
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