Sydney Morning Herald: Winners and Losers From NT Gas Pipeline Deal

China-controlled pipeline developer Jemena has been prepared to sacrifice initial returns to win the contract to build the $800 million North East Gas Interconnector project, which has left local pipeline giant APA Group nursing its second defeat within weeks.

Managing director Paul Adams said Jemena would accept "tight" returns in the early years on the NEGI project that will deliver NT gas from Tennant Creek to Mt Isa. But he said the bigger picture was one of a new northern gas business for unlisted Jemena that could see a further $1 billion invested later in an extension of that line.

"It will make money but it's not just one contract that's going to make money," Mr Adams said.

"We see his pipeline as making money in the long term and the advantage we have is we have long-term investors," he added, referring to controlling shareholder State Grid Corporation of China, the world's biggest utility, and minority shareholder Singapore Power. MORE