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Gove gasline proposed for alumina refinery

THE Northern Territory Government last week proposed a dual fuelling option to Gove Alumina operators after original plans were found to pose too great a risk against the state’s economic wellbeing.

As part of negotiations with Pacific Aluminium, the government has submitted a plan to dual fuel the Gove refinery using a combination of heavy fuel oil and natural gas for 15 years, purchased from the state at 13PJ per year.

The counteroffer comes after a due diligence analysis found the original intention of receiving 25PJ of gas per year for 12 years would risk a $3.2bn gas pricing risk, as well as potential energy shortages across the territory.

Chief minister Adam Giles said the new proposal struck a balance between meeting the needs of a single company against the interests of the Northern Territory as a whole.

“We understand the importance of the refinery to the local community and the Territory economy and we are confident the new deal is a better, longer-term solution,” Mr Giles said.

The Federal Coalition has also promised to underwrite financing for the proposed gas pipeline to Gove, should it win the next election.

For more information about the Gove project, click here.

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