A deal to supply and transport gas via the North East Gas Interconnector (NEGI) pipeline has been signed and confirmed.

Power and Water Corporation Board Chair, Mr Alan Tregilgas, signed agreements on behalf of the corporation with Incitec Pivot to supply and transport gas via the North East Gas Interconnector (NEGI) to Mt Isa in Queensland.

The gas transport agreement, along with a similar agreement from Central Petroleum, provides the initial gas transport customers for the pipeline as well as the processing of gas to Australian Standard Specification. This is a first for the Northern Territory.

Power and Water Corporation will use the gas sales agreement to lock-in a guaranteed gas supply for Incitec Pivot for approximately 10 years to 2028, from completion of the NEGI.

The NEGI gas pipeline will stretch from Tennant Creek to Mt Isa, connecting the NT market to the Carpentaria Gas Pipeline in Queensland and the national grid.

Once completed, Power and Water will be able to sell gas to Brisbane, Sydney, Melbourne and Adelaide.

This is an attractive commercial venture for the corporation, which has the added benefit of providing employment opportunities through the construction of the gas pipeline.

Incitec Pivot now becomes Power and Water’s second biggest gas customer after Territory Generation. 

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