Department of the Legislative Assembly, Northern Territory Government

Mr HATTON - 2000-10-19

My question is a follow-up question to comments made by the Chief Minister in answering an earlier question in Question Time. Phase 1 of the Bayu/Undan Project has been committed and is due to start producing liquid hydrocarbons by early 2004. Can the minister advise the House of any progress being made towards getting phase 2 of the major project - that is the piping of gas onshore to Darwin - off the drawing board?

ANSWER

Mr Speaker, indeed, I am very pleased to inform honourable members - although obviously the opposition won’t listen because as it has been seen in the last couple of weeks they have continually talked down the Northern Territory’s economy, talked down the future of the Northern Territory, proposed that Darwin be expanded towards Bachelor, and been negative about every set of figures, been inaccurate in quoting them, and generally attempted to do a lot of harm to our business community.

I am very pleased to be able to say that Phillips Petroleum and Multiplex Constructions are about to commence final survey works for the proposed natural gas pipeline linking the Bayu/Undan Gas Fields with Darwin. It is another step in the process of creating jobs in the Territory. It is part of our vision which is very clearly announced by the Chief Minister in Foundations for Our Future, documents of course that the opposition does not want to read but they are documents that the community is very pleased to see because it projects a vision for our community. It projects a vision which is going to create a future for our grandchildren. I am pleased to say the supply vessel Mermaid Achiever arrived in Darwin yesterday and docked at the East Arm Port. It is currently taking on supplies here in Darwin and it is being fitted out with special survey equipment here in Darwin for the task ahead, and that just builds on what I told the House the other day. Six thousand jobs directly and indirectly in Darwin as a result of the oil and gas activity already, and these people opposite continue to down play what is occurring in our economy.

This work is certainly another important step in establishing the first commercial gas transportation system in the central Timor Sea. Now the survey - and the member for Arnhem might be interested, too, in what is happening here which is part of this government’s process of creating jobs in the future. The survey will acquire depth and seismic information along the pipeline corridor to select the best possible route for the 500km pipeline. The first phase of the survey work will be completed over the next four weeks. It is going to include detailed assessment of the proposed pipeline route in the Timor Sea right through to the Darwin Harbour and to the landfill site at Wickham Point. The near shore work in the harbour is going to include magnometer surveys which will confirm cable crossings, wreck sites and other features so the route and the installation procedures can be finalised.

The second phase will be completed in December. That is going to comprise drilling, coring, activities on the sea bed at the selected sites along that final pipeline route. This is going to allow completion of the final design of the pipeline during the first quarter of 2001. I am pleased to let people know that under a recent agreement with Phillips, Multiplex is responsible for the design and the installation of the pipeline and the survey work is a critical step towards construction of the Bayu-Undan to Darwin gas pipeline. Multiplex has secured pipe supply from major overseas steel mills with purchase orders for pipe to be confirmed in March 2001 after completion of detailed design. Final selection of pipeline diameter, ranging from 26-inch to 36-inch, is obviously important. That will also be confirmed in March 2001 and the final project sanctioned by Phillips is anticipated by July 2001. That timetable is going to allow for simultaneous liquids production and gas exports from Bayu-Undan in early 2004.

Bringing Timor Sea gas to Darwin and developing a new gas-based energy industry for the Northern Territory, as I have said, are key objectives for the government’s Foundations for Our Future policy initiative. Natural gas from the Timor Sea – as has been stated by the Chief Minister – will be available for power generation, for fuelling new industrial developments and for piping to interstate markets. This will be the first step towards future development of a liquefied natural gas L&G – or it could be anyway – export project for the Territory. But most important of all, it will mean growth of jobs for Territorians and economic growth for the Territory.
Last updated: 09 Aug 2016