QHGP General Manager Bob Otjen said that the company is still in negotiations with gas companies in Queensland, and with potential customers in New South Wales.

Mr Otjen said that construction of the pipeline is now scheduled to begin in 2012, with completion and commissioning targeted for later that year.

He also said that the company is holding discussions with engineering and procurement companies for the pipeline’s construction. The shortlist includes Leighton Holdings, Laing O’Rourke and McConnell Dowell.

The pipeline route includes 220 kilometres in Queensland and the remaining 620 kilometres in New South Wales. It will be 500 millimetres in diameter and have a capacity of 85 petajoules oer annum. A small lateral – approximately 10 kilometre in length – will also extend from the main corridor to the Maitland area in New South Wales. There are currently two metering stations planned, located at Wallumbilla and Hunter Valley, while others will be constructed as required.

Construction of the pipeline was originally expected to start late 2010–11 with gas flow to commence in the first quarter 2012.

Construction delayed on Queensland Hunter Gas Pipeline