Australia: NT Agrees to Supply Gas to Gove Refinery

The Northern Territory Government has agreed to release enough gas to keep the Gove alumina refinery open for the next ten years.

Decision is subject to a commitment from Rio Tinto assuring the ongoing operation of the Gove alumina refinery, and from Eni confirming details of their guarantee to supply gas to Power and Water Corporation (PWC) until 2026.

Chief Minister, Terry Mills, said his Government would then direct PWC to release the agreed amount of Gas to Rio Tinto and create certainty for the Nhulunbuy community.

“Following recent meetings with international energy companies and Federal colleagues, I am now confident I have reduced the risks associated with the supply of gas to the Gove refinery,” Mr Mills said.

“The release of the Northern Territory’s gas supply to the Gove refinery has been met by support from the Commonwealth Government and the Federal Coalition, as well as a realisation that there needs to be a greater focus on domestic energy supply across Australia.

“The Commonwealth Government has showed its commitment to the Northern Territory Government’s decision by announcing last week they would underwrite the financing of a gas pipeline to Gove.

“Additionally, during my visit to Canberra last week a Memorandum of Understanding was developed between the Northern Territory Government and the Commonwealth Government which seeks to increase energy security and economic development by encouraging onshore and offshore gas exploration and development.

“During my talks, I also highlighted the need to plan for the long-term energy needs of the Northern Territory and Australia by establishing a national pipeline grid, connecting energy supplies from the Territory to the eastern seaboard and the existing national pipeline grid.

“The Federal Coalition has recognised the importance of supplying and strengthening the domestic energy market. My Federal colleague, Shadow Minister for Energy and Resources, Ian MacFarlane, will commit $1million upon coming to Government for a feasibility study for a pipeline linking Tennant Creek to Mount Isa and the national pipeline grid.

“I acknowledge the patience endured by the Nhulunbuy community during these uncertain and difficult times.

“Today’s decision was an extremely important one for the Nhulunbuy community, and it should provide them with the assurance and certainty they have been seeking.

“The Northern Territory Government has now guaranteed a gas supply for the Gove refinery, and it is now up to Rio Tinto to make a commitment to keep the operation open.

“This Government is committed to working with energy companies in the future to develop the domestic energy market and secure the long-term future of Territorians.”

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LNG World News Staff, February 12, 2013