Northeast Australia gas line link contemplated

The Northern Territory government has put its weight behind a proposal to build an Alice Springs-to-Moomba natural gas pipeline. This would link the Northern Territory fields with the Moomba hub in South Australia that already has connections to Queensland, New South Wales, and (indirectly) Victoria.

Northern Territory Chief Minister Adam Giles says his government has given the Alice-Moomba link proposal “major project” status.

Giles added that the Northern Territory is ready to begin a formal process for potential investors to express their interest in building and operating the pipeline.

With a looming crisis in the form of gas supply shortages expected this decade in eastern Australia, Giles says the pipeline link with stranded gas fields in the Northern Territory needs to be operational by 2018.

Analysts suggest that the proposed 900-km project will cost in the region of $1 billion (Aus.) in today’s dollars.

The Northern Territory government is to host an industry briefing about the proposal in Alice Springs at the end of this month to explain the project to potential investors.