Construction of Jemena's $800 million Northern Gas Pipeline, which will bring Northern Territory gas to the east coast, official commenced this week.

Jemena managing director Paul Adams said the pipeline will play a crucial role in helping resolve the east coast gas supply crisis.

"This project is a boon for businesses that rely on gas as either a feedstock or fuel source by providing them with access to new gas at a cheaper price, particularly when compared to the costs associated with transporting gas over long distances from the Moomba Gas Hub to Queensland and New South Wales," Adams said.

"Jemena has already commenced investigative work on expanding the Northern Gas Pipeline and extending it south from Mt Isa to the Wallumbilla Gas Hub to further integrate Territory gas into the east-coast gas grid, provided additional gas supplies are made available in the Territory.

"Our modelling suggests that the pipeline can be relatively easily expanded and extended to transport up to, or beyond, 700 TJs of gas per day. This far exceeds gas used on an average day in the New South Wales and Queensland markets."

The project will create some 900 jobs during construction, of which 600 would go to the local community.

"Pleasingly, 58 graduates of Jemena's Project Ready Training Program - which provides training and development opportunities for local Aboriginal people - have the opportunity to take up full-time employment during construction of the Northern Gas Pipeline," Adams said.

The Northern Gas Pipeline will span 622km from near Tennant Creek, in the Northern Territory, to Mt Isa in Queensland.

Approximately half of the Territory section of pipeline and most of the Queensland section of pipeline will be constructed this year with the remaining pipeline to be constructed in 2018.

Jemena has partnered with McConnell Dowell to construct a 481km section of the pipeline across the Territory and into part of Queensland. The remaining 141kms of pipeline in Queensland will be constructed by Spiecapag Australia.

First gas on the Northern Gas Pipeline is expected to flow in late 2018.