State Grid's Jemena Unit Wins Bid to Develop Australia Pipeline

  • Pipeline from Northern Territory to cost A$800 million
  • Jemena beats bidders including APA for link to east coast

Jemena Ltd., the energy company controlled by State Grid Corp. of China, was picked to develop an A$800 million ($567 million) pipeline linking Australia’s Northern Territory to east-coast markets, beating competitors including APA Group.

The 622 kilometer (387 mile) pipeline, between Tennant Creek in the Northern Territory and Mount Isa in the state of Queensland, is expected to be completed by 2018, the Northern Territory government said in an e-mailed statement Tuesday.

The pipeline is seen by Northern Territory as a way of spurring development of its natural gas reserves and helping eastern states tackle a looming shortage of the fuel. The territory estimates it has potentially enough gas resources to power Australia for more than 200 years.

“Without this pipeline, the populated parts of Australia would have huge difficulty securing their energy needs,” Northern Territory Chief Minister Adam Giles said in the statement.

APA and Duet Group were among the shortlisted companies to develop the pipeline. The project won’t need any funding from taxpayers, and construction will create more than 900 jobs, according to the government.

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