Our gas supply division provides excess wholesale gas supply and transportation to large business customers.
These gas supply and transportation agreements supply 90 per cent of the electricity generation sector of the Territory. We supply the gas necessary to keep large mining and heavy industrial business operating.
Through the Northern Gas Pipeline, we offer competitively-priced gas into the east coast at its peak winter period when Northern Australia is in its dry season and demand is low.
The Northern Gas Pipeline also enables gas transportation to flow both ways, creating opportunities for added competition across the expanded market increasing the security of supply.
Our gas supply division offers the following services:
- gas sale agreements including gas aggregation
- gas transportation services
- bundled gas and transportation services
- virtual pipeline services, for example, liquefied natural gas (LNG) or compressed natural gas (CNG) solutions
- development of pipelines or spur lines
- coordination of end-to-end delivery of utility services with our business partners, for example, electricity supply.
Our affiliation with the wider energy market allows us to provide a range of solutions to customers including greenfield and brownfield sites.
History of Northern Territory gas supply
Natural gas was first discovered at the Mereenie Gas Field south-west of Alice Springs in 1963. Twenty years later, a 150-kilometre pipeline from Palm Valley field transported gas to the Alice Springs community.
For the next two decades, the Northern Territory Government built an interconnected electricity system in the Territory with gas as the preferred fuel.
An early decision by the government to purchase and transport gas from Alice Springs to Darwin established Power and Water as a significant player in the gas business.
In 2006, Power and Water signed a 25-year gas purchase agreement with ENI and an agreement with Australian Pipeline Trust to build a 275km pipeline to deliver gas from the Blacktip field to the existing Amadeus Gas Pipeline.
We are now an established player in the Territory gas market and are expanding interstate.