Mar 24, 2017

Jemena switches contractors for $800m pipeline project

Jemena switches contractors for $800m pipeline project

Jemena is set to appoint new construction contractors in Queensland and the Northern Territory for its $800 million Northern Gas Pipeline (NGP).

The news came as the company announced it had finalised land access arrangements with the Wakaya People, meaning its has now secured land access with all Traditional Owner groups across the 622km pipeline route.

Jemena said its decision in early March to re-sequence the NGP construction schedule played a key role in reaching today’s land access agreement.

“The decision to re-sequence the NGP provided additional time to work closely with the Wakaya People, it also provided us with an opportunity to review other elements of the NGP project,” Northern Gas Pipeline project director Jonathan Spink said

Mr Spink said following a review Jemena has also decided to part ways with its construction partner McConnell Dowell.

“Jemena will shortly look to appoint a construction partner for the Northern Territory portion of the project through a competitive tender process, with appointment of a Queensland contractor expected in the next couple of months,” he said.

Mr Spink confirmed that construction of the pipeline was scheduled to commence in mid-2017, and the project remained on track for first gas to flow in 2018.

Today’s land access agreement follows more than 12 months of discussions and negotiations with Traditional Owners and their representative Land Councils.

“This is an important next step towards delivering the Northern Gas Pipeline, and Jemena is pleased to have reached a positive outcome with the Wakaya People and other Traditional Owner groups in the Territory and Queensland,” Mr Spink said.

“We are also grateful for the hard work and efforts of the Northern Land Council and Central Land Council. It was an extremely tough consultation process given the vast physical distance needed to be covered to ensure agreement by all parties.”

As part of the agreement, Jemena will work with the Wakaya People to ensure they benefit from the NGP’s $6 million Jobs and Training Package alongside all Traditional Owners on the pipeline route.

Mr Spink said the package would be delivered by local providers including Group Training Northern Territory (GTNT), Myuma Group, and Remote Concrete NT.

The NGP project is expected to employ about 600 people across the Tennant Creek and Mount Isa regions.

Jemena was selected by the Northern Territory Government in 2015 to build and operate the Northern Gas Pipeline, which will connect Northern Territory gas fields with the east-coast gas market at Mount Isa in Queensland.

For more information about the Northern Gas Pipeline Project visit www.jemena.com.au.

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