The move stemmed from Jemena's decision earlier this month to re-sequence the construction of the pipeline to start the Queensland portion first, Energy News has learned.

 

Starting work in Queensland will give Jemena more time to have discussions with traditional owners, particularly the NT-based Wakaya Aboriginal Land Trust, which last month formally lodged an objection with the NT government claiming that the trust had not given consent to the clearing for the proposed pipeline between Tennant Creek and Mt Isa.

 

Energy News has learned that Jemena has narrowed down the contractor for the Queensland portion of the NGP to four, as it considers that McConnell Dowell does not have the special skill set required for the terrain in the Sunshine State.

 

McConnell Dowell will now be excluded from tendering for any of the project, and though the details of the exact reasons why are commercially sensitive, Energy News learned that the decision stemmed from the re-sequencing decision.

 

Chamber of Commerce NT acting CEO Brian O'Gallagher said Jemena needed to ensure the new construction partner is committed to local content, but Energy News understands the pipeliner has already been looking at bringing some of McConnell Dowell's work in-house, so there is likely to be more opportunities for locally-based contractors to carry out work.

 

"It is disappointing to hear this is happening," O'Gallagher said in the NT News.

 

"We feel this undermines confidence in the region. I am aware of local companies who are gearing up in anticipation for this work.

 

"Whoever does win the construction job has to ensure they source labour and supplies from Territory companies." 

 

Jemena said the requirement to source locally would be transferred to the new supplier.

 

The Chinese-backed firm expects to make a decision on the contractor for both the Queensland and NT portions by May.

 

First gas is still on track for the second half of next year.

 

"Jemena is confident that the decision to part ways with McConnell Dowell will not delay the project," a Jemena spokesman said. 

 

"As part of the project's resequencing, Jemena will commence construction of the NGP pipeline in Queensland in mid-2017.

 

"The resequencing gave Jemena additional time to work through outstanding approvals in the NT. 

 

"It also allowed Jemena to review its commercial arrangements with McConnell Dowell without impacting the project's delivery date or the start of construction."