Mr GUNNER - 2015-11-17
Today the government announced the successful bidder for the North East Gas Interconnector. I congratulate Jemena on its successful bid. Labor supports the pipeline project and welcomes the announcement. We believe this is above politics and is a sound investment in the growth of the Northern Territory.
Can you please advise the House of the details of this successful bid, what you expect will be the impact on the Barkly region and what the next steps are?
ANSWER
Madam Speaker, I thank the member very much for the question. One of the big things that came out of the press conference was the hesitation by industry in regard to Labor policy on gas drilling in the Northern Territory.
I can tell you about the gas pipeline, but three minutes is probably not sufficient. An exhaustive process started in 2013. The first forum was held on 30 October 2014 in Alice Springs with some 70-plus people, who heard my vision about the gas pipeline. We have engaged a company called Port Jackson Partners, which has run an intensive program. It came down to about four proponents through a probity process: a company called DUET Group; another organisation called PCPA promoting Alice to Moomba; and two companies promoting Tennant Creek to Mount Isa, APA Group and Jemena.
Jemena was identified as the successful bidder based on the cost of tariff, its design of a 14-inch pipeline and its willingness to look at building an 18-inch pipeline, in the event increased levels of gas become present. At the point of an 18-inch pipeline being built, the tariff will be even lower, which will assist business. It will also see the lowest gas processing costs of any bid that came through. I cannot disclose those numbers for commercial-in-confidence reasons, but they were by far the highest bidder.
There are about 900 jobs for the construction of the pipeline, 600 of which will be on the ground between Tennant Creek and Mount Isa. There is a ceiling of 162 jobs set aside for Aboriginal Territorians or Indigenous Queenslanders to participate in that. There is $112m set aside through about 100 contracts to work with local people to create business and jobs. We have contracted for local participation plans for Tennant Creek and Mount Isa to be included so local people have an opportunity of getting work. The pipeline needs to be built by 31 December 2018 for the first gas to flow from 1 January 2019.
For Tennant Creek this presents a significant shot in the arm, on the back of the Minister for Transport’s announcement of starting the milk run with Airnorth flights from Darwin to Katherine, Tennant Creek, Alice Springs and return. The investigation of a rail line between Tennant Creek and Mount Isa, and our gas pipeline connecting the two, will bring about enormous gains for Tennant Creek and the broader region through Barkly, and into Queensland through northern Australia.
Three minutes is not enough, so I am happy to talk more about this at a later point.
Can you please advise the House of the details of this successful bid, what you expect will be the impact on the Barkly region and what the next steps are?
ANSWER
Madam Speaker, I thank the member very much for the question. One of the big things that came out of the press conference was the hesitation by industry in regard to Labor policy on gas drilling in the Northern Territory.
I can tell you about the gas pipeline, but three minutes is probably not sufficient. An exhaustive process started in 2013. The first forum was held on 30 October 2014 in Alice Springs with some 70-plus people, who heard my vision about the gas pipeline. We have engaged a company called Port Jackson Partners, which has run an intensive program. It came down to about four proponents through a probity process: a company called DUET Group; another organisation called PCPA promoting Alice to Moomba; and two companies promoting Tennant Creek to Mount Isa, APA Group and Jemena.
Jemena was identified as the successful bidder based on the cost of tariff, its design of a 14-inch pipeline and its willingness to look at building an 18-inch pipeline, in the event increased levels of gas become present. At the point of an 18-inch pipeline being built, the tariff will be even lower, which will assist business. It will also see the lowest gas processing costs of any bid that came through. I cannot disclose those numbers for commercial-in-confidence reasons, but they were by far the highest bidder.
There are about 900 jobs for the construction of the pipeline, 600 of which will be on the ground between Tennant Creek and Mount Isa. There is a ceiling of 162 jobs set aside for Aboriginal Territorians or Indigenous Queenslanders to participate in that. There is $112m set aside through about 100 contracts to work with local people to create business and jobs. We have contracted for local participation plans for Tennant Creek and Mount Isa to be included so local people have an opportunity of getting work. The pipeline needs to be built by 31 December 2018 for the first gas to flow from 1 January 2019.
For Tennant Creek this presents a significant shot in the arm, on the back of the Minister for Transport’s announcement of starting the milk run with Airnorth flights from Darwin to Katherine, Tennant Creek, Alice Springs and return. The investigation of a rail line between Tennant Creek and Mount Isa, and our gas pipeline connecting the two, will bring about enormous gains for Tennant Creek and the broader region through Barkly, and into Queensland through northern Australia.
Three minutes is not enough, so I am happy to talk more about this at a later point.
Last updated: 09 Aug 2016