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https://infrastructureaustralia.gov.au/policy-publications/publications/files/IA18-4005_Priority_List_2019_ACC_L.pdf
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Problem
The 2015 Australian Infrastructure Audit
identified a potential gas supply shortfall
in the eastern gas market as a result of
increased domestic and export demand.
In the absence of additional supply, this
increased demand is expected to lead to
higher prices. The Northern Territory and
Western Australia have price-competitive
gas available, but are not directly linked to
the eastern gas pipeline network.
Providing a connected national energy
market with sufficient capacity to supply
domestic and foreign markets, withstand
supply shocks and market forces, and
sustainably contribute to Australia’s
broader environmental goals will support
the resilience of the national economy.
Proposed initiative
Develop infrastructure to connect northern
and/or western Australian gas reserves to
the eastern gas markets.
A project to construct a pipeline between
Tennant Creek and Mount Isa, connecting
the Northern Territory gas supply with the
eastern gas market, was completed in 2018.
This provides some additional supply to
the eastern states, and supports economic
growth in the Northern Territory.
However, it is not yet clear if this link is
sufficient to address the shortfall in the
eastern gas market. Additional action,
including possible future capacity
investment between the Northern Territory
and the eastern states, or a pipeline
connection to Western Australia, may be
required in the future.
Next steps
Proponent(s) to be identified.
Infrastructure