Jenema is also building the Northern Gas Pipeline but exemptions gained here in the NT means there is uncertainty over prices it can charge for use of the pipeline. Potentially the local arrangements could make the cost of gas ultimately delivered to the East Coats more expensive.
ICAC call over pipeline pricing exemption
EJA said it would ask the NT's Independent Commission Against Corruption (ICAC) — once it is established later this year — to investigate whether Jemena exercised undue influence on the NT Government to gain an exemption from the new national gas rules.
The rules govern how disputes over how much gas companies have to pay to use pipeline infrastructure are resolved.
"Management successfully worked with the Northern Territory Government to secure a derogation from the [National Gas] Rules for the Northern Gas Pipeline," Jemena's report stated.
The exemption could potentially increase the cost of piping gas from the NT's planned new fracking industry, Mr Barnden said.
"The exemption gives Jemena essentially a licence to print money for gas going through the Northern Gas Pipeline, and it means Jemena is not under the oversight of the Australian energy regulator when it comes to pricing for accessing its pipeline," he said.
"We would like Jemena to explain how it achieved the exemption.
