From the AFR, it appears we are verging on getting ourselves a national gas grid with the NT government approving the construction of the northern route North East Gas Interconnector:
…However the decision rules out the possibility of an alternative route being chosen, from Alice Springs to Moomba, that some say, while more expensive, would have allowed gas from the NT to more easily reach NSW, the state where it is most needed.
According to one source, the delivered cost of gas to Sydney would be about $1.40 a gigajoule higher using the Queensland route than using a link to South Australia.
But sources close to the NT government point out that supplying gas to Queensland will free up gas closer to NSW for use by consumers in that state through a knock-on impact in the market.
Obviously good news. Given my very bearish view of the outcomes ahead for LNG export volumes it may even be enough.
