THREE of the four proponents shirt-listed to build the pipeline linking Northern Territory gas to the east coast market are publicly in favour of the Mount Isa route.
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Chairman of the Tennant Creek - Mount Isa Cross Border Alliance Jason Newman said the group was optimistic about the two cities being the preferred route for pipeline companies.
‘‘We’re confident whoever is picked will build it from Tennant Creek to Mount Isa,’’ Mr Newman said.
Jemema, APA and Merlin Energy have told the lobby group their preferred route is Tennant Creek to Mount Isa.
Government sources also believe the other proponent short-listed, Duet, is keen on the Tennant Creek to Mount Isa route.
A number of factors make Mount Isa a favourable option, including having the skills base to construct the infrastructure for the gas pipeline in Mount Isa.
‘‘Mount Isa is a mining city with a lot of industry expertise and engineering skills,’’ Mr Newman said.
One of the conditions of the proposal includes using local labour and supplies to facilitate the construction of the pipeline.
The alliance said it would work together to ensure local jobs were generated.
Another advantage of the Mount Isa route is its ability to save hundreds of jobs at Incitec Pivot’s Phosphate Hill acid plant in Mount Isa and the copper smelter.
The next step in the process will be a public forum in Mount Isa, where key figures including NT Minister Adam Giles and Queensland’s Minister for Natural Resources and Mines Anthony Lynham would be expected to discuss the proposal.
While there is much confidence about the prospect of the Tennant Creek to Mount Isa route winning out, the danger in the equation is the Alice Springs to Moomba option.
There is already an established processing centre to clean up the gas in Moomba and it is an instant gateway to the Sydney market.
The Tennant Creek to Mount Isa route is about $400 million cheaper, but about $200 million would need to be spent to build a clean-up centre for the gas.
It means the route essentially remains $200 million cheaper in comparison and would leave a $200 million investment in vital infrastructure in Mount Isa.
Mr Newman said there was the possibility that both routes – Tennant Creek to Mount Isa and Alice Springs to Moomba – could be viable.
Mr Newman said creating a lobby group within 12 weeks and attracting key government figures, including NT Chief Minister Adam Giles, to a forum in Tennant Creek was proof of the proactive approach the alliance was taking to the proposal.
In contrast, there is very little lobbying from Alice Springs or the South Australian Government, which would be key to the possibility of the pipeline going from Alice Springs to Moomba.
The other option of Tennant Creek to Boulia has more impediments due to its route through the desert.
There is a bigger customer base for the gas in the Mount Isa region, says Mr Newman.
The four short-listed proponents are already on the hunt for gas suppliers, with one of the biggest companies in the gas industry, Central Petroleum, keen to become involved.
Central Petroleum managing director Richard Cottee said: “Our role is intended to be as a supplier of the gas to be transported through the pipeline.
“The proposed pipeline will directly link the Northern Territory’s budding gas fields, including Central’s Palm Valley and Dingo fields, to the huge domestic demand centres of South Eastern Australia. The effect will be to create the backbone for a domestic gas market.”
There is also a $1 million investment into a feasibility study by the NT government into a rail line between Mount Isa and Tennant Creek, which enhances the prospects of the proposed gas pipeline.
