However, the NT News reported that Jemena remains confident that gas will flow through the pipeline in 2018, despite NT Labor’s plans to impose a moratorium on hydraulic fracturing, should they be elected in August this year.
NT Labor Leader Michael Gunner has said there is enough gas available for the pipeline to go ahead without the need for further development onshore.
“It has always been clear that the excess gas from ENI and future supplies from Mereenie and future offshore supplies are what you need to build your business case around the pipeline on,” Mr Gunner said.
Meanwhile, NT Chief Minister Adam Giles said Labor’s ban is a threat to the AU$800 million gas pipeline and the 900 jobs it will create by robbing the pipeline of gas it needs to be viable.
“An election is supposed to be a battle of ideas. Labor has shown they have nothing innovative to create new jobs and no interest in developing new opportunities other than what the Government is already pursuing,” Mr Giles said.
The Mereenie Gas Field commenced production in 1984 and has produced over 16 MMbbl of oil and condensate and over 240 Bcf of sales gas.
In 2014 the field produced 225,600 bbl of oil, 41,000 bbl of condensate, and 5 PJ of natural gas.
The proposed 622 km Northern Gas Pipeline will connect Tennant Creek in the Northern Territory to Mt Isa in Queensland.
Construction on the pipeline is scheduled to commence in 2017, with commissioning expected in 2018.
McConnell Dowell has been selected as the construction contractor for the pipeline.