Preparatory design work has started on a new compressor station in Mount Isa to support the Northern Gas Pipeline from Tennant Creek.
The 620km pipeline is being constructed by Jemena and the company’s local industry participation coordinator Martin Edwards gave an update on the project at MineX on Tuesday.
Mr Edwards said there would be two compressor stations one at each end in Tennant Creek and Mount Isa and Jemena were looking to site the Isa one near the Diamantina Power Station.
Early works have already begun at the Northern Territory compressor station site and they were preparing for early works in Mount Isa.
“The requests for quotation for the Mount Isa compressor site are closed and are now under review,” Mr Edwards said.
In other developments on the pipeline, Mr Edwards said pipe manufacture was complete with 350km of it – over half the total – stockpiled.
“We have begun detailed discussions with potential contractors for the Queensland section of pipeline,” Mr Edwards said.
We have begun detailed discussions with potential contractors for the Queensland section of pipelineMartin Edwards
Mr Edwards said Jemena had been granted a pipeline licence from the Northern Territory and the Queensland governments and all indigenous land access along the entire route had been granted.
First gas along the $800 million pipeline is expected to flow in 2018.
Earlier this month the Australian Financial Review reported Jemena were looking at a possible expansion of the pipeline to put an extra 600 TJ of gas a day into the domestic gas market. They quoted Jemena executive general manager of corporate development Antoon Boey who said they were undertaking feasibility studies for a 1100km extension from Mount Isa to southern Queensland expected to cost another $1 billion.
Mr Boey said Jemena was confident there would be enough gas contracts to underwrite the project, despite the NT moratorium on on-shore gas exploration.