May 24, 2018 Read More →

ATO Investigating Jemena Over Financing for NT-to-Queensland Gas Pipeline

ABC News Australia:

Jemena has told the ABC it gained the exemption because the prices it agreed upon with NT Government that it will charge were competitive.

“Jemena took part in an 18-month competitive tender process run by the Northern Territory Government to win the right to build, own, and operate the Northern Gas Pipeline,” the company said.

“This process also set the access terms including price for use of the pipeline.

“As a result of this process, users of the pipeline can be certain the pipeline’s tariffs are competitive.”

Investment analyst Bruce Robertson from the Institute for Energy Economics and Financial Analysis said he didn’t expect that would remain the case.

“A gas pipeline is a natural monopoly,” he said.

“To be given carte blanche like they have to charge high prices to transport gas from the NT, effectively it will be a wealth transfer that’s occurring from the people of the NT to Jemena’s owners, the governments of Singapore and China.”

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