McConnell Dowell has secured construction contract from Jemena for the Northern Gas Pipeline (NGP) Project in Australia.
The NGP is a 622km buried gas pipeline between Tennant Creek and Mount Isa. Upon completion, the NGP will, for the first time, connect Northern Territory gas fields with the east-coast gas market.
McConnell Dowell’s scope of work involves the engineering, construction and commissioning of a 481km section of the pipeline, commencing in the Northern Territory.
The award comes after an extensive early contractor involvement process between Jemena and McConnell Dowell, during which time Jemena secured the necessary approvals and land access to allow the project to move forward. With this award secured, McConnell Dowell will expeditiously commence site activities over the coming weeks with the first gas expected to run through the pipeline in late 2018.
McConnell Dowell CEO Scott Cummins said the company has industry leading experience in the delivery of cross country pipeline projects.
“This project will build on the successful relationship between McConnell Dowell and Jemena and is a testament of the customer’s confidence in our experience and ability to construct this critical infrastructure link.”
Jim Frith, Managing Director Australia said “The award of this contract for the Northern Gas Pipeline project is the result of substantial collaboration between our two companies that ensured the project design is fit-for-purpose whilst significantly reducing costs.”
At a signing ceremony held in Melbourne today, Jemena’s Managing Director Paul Adams said the company is confident McConnell Dowell is well placed to construct and deliver the NGP.
“McConnell Dowell has been one of Jemena’s key partners throughout the NGP Project, having worked closely with us throughout the initial tender, and throughout 2016. They have a fantastic mix of skills and experience which will be key to this project’s success.”
Mr Adams said the NGP’s resequencing in early March meant Jemena had re-evaluated or put on hold a number of key contracts until such time as land access and other approvals were finalised.
“With land access arrangements agreed with Traditional Owners and other landholders, we now have the certainty we need to appoint McConnell Dowell to construct the Territory portion of the NGP.”
“Partnering with McConnell Dowell allows us to build a cost-effective pipeline, relatively quickly to support a strong gas industry for the Northern Territory by delivering gas to the market at a competitive price,” said Mr Adams.
McConnell Dowell has committed to maximising local and Indigenous participation during construction of the project.
McConnell Dowell will continue to use the Northern Territory ICN Gateway and our established local business networks to identify suppliers and subcontractors, with proven competence, who are commercially competitive, to participate in the construction of the pipeline.