NSW, NT sign MOU over joint gas pipeline project
The New South Wales Government has thrown its support behind the Northern Territory's push to build a gas pipeline connecting supplies in the Territory to energy markets on the east coast.
In Sydney on Friday, NT Chief Minister Adam Giles signed a memorandum of understanding on the billion-dollar proposed project with his NSW counterpart, Premier Mike Baird.
Mr Baird said the pipeline would supply much-needed gas to the state's "struggling" industrial sector, as well as to homes.
Federal Industry Minister Ian MacFarlane has said NSW is facing a looming energy shortage that could see it run out of gas by 2016.
Mr Baird said it would also make the gas industry more competitive, which would ultimately benefit consumers.
"If we have additional gas that comes in, that's going to improve everything," he said.
"It's going to provide more competitive businesses, it's going to put downward pressure on household bills, and it means the existing players in this market - well, there's going to be more competition.
"And more competition brings more downward pressure on prices."
Pipeline will boost jobs in NT: Giles
Mr Giles said the pipeline would create regional jobs for the Territory and provide a budget boost from from gas sales royalties.
"Not only do we get royalties through gas developments, but we can create jobs in regional and remote parts of the Northern Territory," he said.
The move is part of the Territory government's push to position itself as an energy hub for the region.
"We estimate we have around 240 trillion cubic feet of gas across six basins and many of those basins are stranded," Mr Giles said.
But experts have questioned just how readily gas could be extracted from NT reserves.
The leaders said they will work together on the 1000-kilometre gas pipeline that would run either from Tennant Creek to Mount Isa, or Alice Springs to Moomba to link into the existing eastern gas grid.
Mr Giles and Mr Baird said the proposed pipeline would be an important step in developing a national gas market, to improve Australia's energy security.
Leaders 'not concerned' about anti-gas backlash
Mr Baird said the move to import gas from interstate was not about kowtowing to the state's vocal anti-coal seam gas and anti-fracking groups.
The NSW Government was not turning its back on coal seam gas projects, he said.
"Think about any business that you run, and state government in essence is like a business," he said.
"You need to diversify your risks, and one of the key risks is energy supply - you need to make sure you have the most sources of gas you possibly can; that provides downward pressure on prices."
Mr Giles says he was similarly not worried by critics of the project.
"I think there are different dynamics between the Territory and NSW. We don't mind having a fight," he said.
"We know that natural gas is a part of energy security in Australia, and we need to be able to put our foot down from a Territory point of view and say, 'this is part of our future'."
Mr Giles said it is hoped the pipeline would be operational by mid 2018.
Expressions of interest from potential investors will open in a fortnight.
