The peak body for Australia’s gas transmission industry has welcomed the strong commercial interest in the development of the proposed North-East Gas Interconnector pipeline.
“This infrastructure could be the beginning of a national gas market, as well as provide new gas for the east coast,” APGA CEO Cheryl Cartwright said at the annual South East Asia Australia Offshore and Onshore Conference
“The east coast gas supply situation is challenging. Combined demand for gas for export from the new LNG facilities in Queensland is more than twice the size of the east coast gas demand, putting pressure on gas supplies,” Cartwright said.
“But the Northern Territory government has gas it could sell interstate provided it could ship it there,” she said.
“And a new pipeline, whichever route is chosen, could open up new exploration and production in areas now too remote to be viable.”
More than $6 billion has been invested in gas transmission pipeline infrastructure in the NT and on the east coast since 2000.
“Competition is strong to build the gas pipeline to link NT gas with the eastern market, an indication of the value of this infrastructure,” Cartwright told the SEAAOC conference.
“This is a demonstration that transmission infrastructure is constructed to meet supply and demand requirements; the pipeline industry is ready to meet the challenges of the market.”