NT Labor and CLP trade blows over pipeline

The Northern Territory's chief minister has accused Labor of scaring off gas investors while Labor says the government has made a "monumental stuff-up" as the two sides trade blows over a gas pipeline to the east coast.

Winning tenderer of an $800 million gas pipeline, Jemena, has said it will reduce the size of the pipe from 14 inches to 12 as gas suppliers express uncertainty about the industry's future after the August NT election.

If it wins, Labor has said it will instate a moratorium on fracking until it can review the science to assuage community fears, but Country Liberals Party (CLP) Chief Minister Adam Giles says that plan is wrecking the industry.

"We're already seeing projects cancelled and people sacked since (Labor) announced their anti-gas policy," he told Mix 104.9 radio on Monday morning, accusing Labor of killing off the industry.

"People who are looking at investing in the Territory are walking away and that's on Labor's head and they need to explain what they're going to do about it."

To keep the pipeline at 14 inches would cost the NT an additional $60 million, although the government has previously said it would not kick in any taxpayer funds for the project.

When asked why the government did not choose tenderer APA Group, which had an unconditional bid to build a 14-inch pipeline, Mr Giles said that Jemena offered the best cost structure, time frame and delivery for the project.

He repeated an election promise that every dollar in royalties earned from the pipeline would be reinvested in vocational and higher education.

But Opposition Leader Michael Gunner said Labor had supported the pipeline from the beginning and said the government made an expensive mistake by choosing Jemena.

"It will be very hard to convince me that Territorians should foot the bill to fix up a massive, monumental stuff-up by the CLP," he said.

"That $60 million should be spent on honouring promises the CLP have broken" such as funding extra police and teachers, Mr Gunner said.

"To go around saying we're killing off industries is a deliberate error by the chief minister, which is extremely concerning."