Risks remain for the NEGI

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.