Blacktip shortage stops gas being piped to Queensland

Blacktip shortage stops gas being piped to Queensland

by | Mar 20, 2024 | Business, News | 2 comments

Gas flow from the Northern Territory to Queensland stopped in early February and pipeline operator Jemena has told customers it did not expect it to resume until at least June because of reduced supply from the Blacktip gas field the ABC reported.

The Northern Gas Pipeline is the only pipe connecting the NT’s gas fields to the east coast – via Mount Isa – and the ABC reported an un-named Jemena representative had said the company had last week told its customers it expected it would not to be able to deliver gas until at least June.

“Gas flows along the Northern Gas Pipeline ceased due to an upstream supply constraint — we’re working closely with key stakeholders including the NT government and the NT Gas Taskforce in response to this evolving situation,” a spokesperson was quoted as saying.

“While the NGP is not operating, we understand arrangements have been made to ensure the gas needs of customers in Mount Isa continue to be met.

“We do not see the supply shortage as impacting the long-term operation of the NGP.”

The ABC reported the pipeline was commissioned in 2019 and the majority of gas it has carried has come from Italian company Eni’s Blacktip field in the Joseph Bonaparte Gulf. The company also has a contract to provide gas to Power and Water Corporation until 2034, as part of a $5.5 billion deal.

The gas not needed by PWC has been sold to Incitec Pivot’s Phosphate Hill mine near Mount Isa, the ABC reported, but since early 2021 gas from Blacktip has reduced by about 85 per cent limiting any excess gas.

The lack of gas supply forced the NT Government to buy gas off Santos and Inpex, as well as “other suppliers” to keep the power station functioning.

The ABC reported the NGP shut down for three months in 2022, and last year it also shut for three months on two separate occasions.

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2 Comments

  1. Congratulations to Michael Gunner and his fabulous team for their vote winning GAS moratorium which sent Gas players not investing in the NT!
    We now have a situation of
    -GAS players went and invested elsewhere
    -NO Gas reserves policy for Inpex (Good one Clair Martin)
    -Black Tip has run out of gas early
    -The cost difference between GAS and DIESEL is immense! DIESEL is used by PAWA when the GAS gets low!

    The Gunner Fyles Lawler Governments will be remembered forever !!!!

  2. We export gas at a cheap price by the boat load. Now we import it back and pay top dollar. How bloody stupid is this country.

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