Insight
Risks remain for the NEGI
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Report summary
Australia's Northern Territory (NT) Government has taken a big step in connecting the east and north coast gas markets by a newbuild gas pipeline – selecting a route and operator to deliver the new infrastructure. Supporters of the NEGI have suggested it will kick-start the NT unconventionals business and relieve concerns across the east coast of a forthcoming gas shortage. We believe the NEGI could be able to provide modest gas supply to the Mount Isa market at competitive prices, but its overall impact on the north and east coast gas supply picture will be limited. Moreover we believe that the construction of the NEGI is far from assured as large technical and commercial risks to its development remain.
Table of contents
- Executive Summary
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Background
- Map 1. NEGI pipeline –Tenant Creek to Mount Isa route selected
- Supply
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Cost of supply
- Figure 1. NEGI cost of supply to Mount Isa*
- Risks to the NEGI
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Future potential and implications
- Figure 2. East coast domestic gas forecast
Tables and charts
This report includes the following images and tables:
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Risks remain for the NEGI: Image 1Risks remain for the NEGI: Image 2Risks remain for the NEGI: Image 3
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