Territory Stories

Budget 2013/14 Northern Territory Economy



Budget 2013/14 Northern Territory Economy

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Tabled paper 295


Tabled papers for 12th Assembly 2012 - 2016; Tabled papers; ParliamentNT




Tabled by David Tollner


Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.




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Department of the Treasury and Finance

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Construction 139 Northern Territory Economy Construction is expected to be completed by late 2013 at an estimated cost of US$360million. At the peak of construction activity, it is estimated that more than 900 construction workers will be required. The project is expected to contribute to engineering activity in 201213 and 201314. In July 2011, BHP Billiton and its partners approved the Phase 2 expansion of the Groote Eylandt Mining Company (GEMCO) manganese refinery and associated port facilities. The GEMCO refinery is located on Groote Eylandt, about 630 kilometres east of Darwin in the Gulf of Carpentaria. The expansion is expected to cost US$279million and will increase production from 4.2 million tonnes per annum (mtpa) to 4.8 mtpa. The project will also include expansion of the road and port infrastructure, increasing port capacity to 5.9 mtpa and providing latent capacity for future expansion. The expansion is expected to be complete by late 2013 and will contribute to engineering activity in 201213 and 201314. A Marine Supply Base is currently under construction at Darwins East Arm Wharf to service the offshore oil and gas exploration and production industries. The new facility will provide existing and planned offshore operations with a full range of support for marine supply and service capabilities required during exploration, construction and operational phases of offshore activity. The project is estimated to cost $110million and will include three marine berths with water, fuel, chemical and drilling mud connections, hard stand and lay down areas, warehousing waste management, storage capacity for drilling mud, office space and associated facilities. Construction of the Marine Supply Base commenced in 2012, and the project is scheduled to be completed by late 2013 with INPEX expected to be one of the first users of the facility. Construction of the facility is anticipated to contribute to engineering construction activity in 201112, 201213 and 201314. Pacific Aluminium, the owners of the bauxite mine and alumina refinery at Gove, are proposing to convert the alumina refinery and the towns power generation from imported heavy oil to less expensive natural gas. The project will require the construction of a 600kilometre gas pipeline connecting Gove to the AmadeusBasin to Darwin gas pipeline at Katherine, conversion of existing power generation infrastructure to run on natural gas and upgrades to offshore infrastructure owned by gas company Eni at the Blacktip gas field and the onshore processing plant at Wadeye, where the gas initially comes onshore. Preliminary estimates are that the pipeline construction, refinery conversion and work on the processing plant and offshore facilities will cost about $1.2billion. About $900 million of the work is expected to be attributed to the Territory, for the pipeline construction, refinery conversion and work at the onshore plant at Wadeye. As the Blacktip gas field is in WesternAustralian waters, $300 million of the work is expected to be attributed to WesternAustralia. The work in the Territory will add to engineering activity in 201314, 201415 and 201516. GEMCO Refinery PhaseTwo Expansion Marine Supply Base Gas Pipeline to Gove

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