The 622 km underground gas pipeline from Tennant Creek to Mount Isa will connect NT gas fields with the eastern and international gas market when complete in 2018.

McConnell Dowell’s scope of work was signed in Melbourne on Thursday and it involves the engineering, construction and commissioning of a 481 km section of the pipeline beginning in the Territory.

The decision is a turnaround for Jemena who ended the initial contract in March when it delayed the project to secure land access.

McConnell Dowell Managing Director Australia, Jim Frith said the contract was the result of substantial collaboration “that ensured the project design is fit-for-purpose whilst significantly reducing costs.”

Jemena’s Managing Director Paul Adams said McConnell Dowell was well placed to construct and deliver the NGP.

“McConnell Dowell has been one of Jemena’s key partners throughout the NGP Project, having worked closely with us throughout the initial tender, and throughout 2016,” Mr Adams said.

Mr Adams said the NGP’s resequencing in early March meant Jemena had re-evaluated or put on hold key contracts until land approvals were finalised.

“With land access arrangements agreed with traditional owners and other landholders, we now have the certainty we need to appoint McConnell Dowell to construct the Territory portion of the NGP,” he said.

“Partnering with McConnell Dowell allows us to build a cost-effective pipeline, relatively quickly to support a strong gas industry for the Northern Territory by delivering gas to the market at a competitive price.”

McConnell Dowell said it was committed to maximising local and Indigenous participation during construction of the project.