Australian energy-infrastructure company, Jemena, signed a new gas transportation contract with Santos to ship around 8 terajoules (TJs) of gas per day across the $800 million Northern Gas Pipeline (NGP).
Gas transported as part of the agreement will be used to provide energy for local mining and mineral processing operations in the Mount Isa region, the company said in a statement.
The new agreement means around 80 percent of the NGP’s total available capacity in year one of operations has now been contracted.
The agreement comes after Jemena signed a contract with Incitec Pivot to deliver 32TJs of gas per day to IPL’s Gibson Island facility in Queensland.
Jemena’s executive general manager of corporate development, Antoon Boey, said the new agreement will see Jemena transport gas for three years from the first day of commercial pipeline operations for Santos.
The agreement also follows Jemena’s agreement with Senex Energy to build, own, and operate the Atlas gas processing plant and pipeline, connecting Senex’s new Atlas gas field in the Surat Basin in south-east Queensland with Jemena’s Darling Downs pipeline and the Wallumbilla gas hub.