Department of the Legislative Assembly, Northern Territory Government

Ms LEE - 2013-05-16

Can you please update the House on the gas to Gove pipeline project and how your government is delivering on investment in the region?

ANSWER

Madam Speaker, I thank the member for Arnhem for her question. Only nine months in parliament and you are already asking about the sustainability of Gove and the alumina refinery project. In four years the member for Nhulunbuy did not ask one question or raise it in parliament.

This government is moving ahead with a core commitment to increase the size of the Northern Territory economy and diversify away from the one big project mindset, bringing real investment opportunity into the region.

Ms Walker: I heard you did not support that.

Mr GILES: The Pacific Aluminium operation at Gove supports not just the thousands of direct jobs.

Ms Walker: I had that from a very reliable source.

Mr GILES: Clearly the member for Nhulunbuy does not want to listen to the answer. She will not ask the question and does not want to hear the answer as I try to update the House on the project ...

Ms Walker: I do not need to listen to you.
Mr GILES: Well done, member for Nhulunbuy! You are becoming more and more irrelevant, not just racist.

Ms LAWRIE: A point of order, Madam Speaker!

Madam SPEAKER: Chief Minister, please withdraw that comment.

Mr GILES: I withdraw. It is with that in mind we have offered up some certainty to the operators of Gove to invest in the new gas pipeline. That certainty is around our existing gas reserves and accessing that gas. The gas to Gove project is a major project for the Northern Territory. The supply of gas from the basin to Gove requires an estimated $1.25bn in capital investment, made up of approximately $500m for ENI Australia to upgrade their Blacktip facility to allow for flow of increased volumes of gas, $150m for the Gove alumina refinery to convert to gas, and $600m to construct a new 603 km pipeline to connect Gove to the existing NT Amadeus Gas Pipeline approximately 20 km south of Katherine.

The Department of the Chief Minister is working with the companies to provide a coordinated response across the Northern Territory government and is facilitating the network of stakeholders by assisting to identify approvals, permits, licences and other regulatory approvals and processes necessary for the project. I note that a major milestone has been achieved with the release of a draft EIS, which is open for comment until 28 June.

With the support of the Commonwealth this project should move into construction. They are currently undertaking a due diligence process with the final decision due later this year. My government recognises a strong working relationship with the Australian government is critical.

In particular, I thank the federal minister, Gary Gray, for his hard and bipartisan approach with the shadow minister. Gary is providing substantial work to get this project to a point where we believe we can move forward.

I hope an agreement will be reached soon between the Northern Territory and Australian governments to progress the project. This will be good news for the Arnhem region, and the people of Nhulunbuy will be pleased.

It is still a challenge to get it across the line. There are many issues, but we are working extremely hard to ensure the sustainability and future of Gove. It has my Cabinet’s 100% focus and we are doing all we can for Gove.
Last updated: 09 Aug 2016