The Northern Territory government has passed landmark legislation aimed at reducing regulatory barriers and improving investment certainty for oil, gas and carbon capture and storage (CCS) projects, calling it a pivotal step in securing the Territory’s long-term energy future.
The Pipelines and Petroleum Legislation Amendment Bill 2026 passed the NT Legislative Assembly yesterday, delivering a suite of reforms to modernise the Territory’s petroleum and pipeline regulatory framework.
Northern Territory Director for Australian Energy Producers, Ryan Neve, said the reforms addressed longstanding barriers to investment and positioned the Territory more favourably against competing energy destinations around the world.
“These practical and timely reforms send a strong signal that the Northern Territory is serious about remaining globally competitive and investment-ready for essential energy projects,” said Neve.
Among the most significant changes are provisions allowing carbon dioxide and hydrogen to be transported through licensed pipelines — a move industry says will provide greater certainty for emerging CCS projects across the Territory.
“Importantly, the reforms recognise the evolving role of energy infrastructure by allowing carbon dioxide and hydrogen to be transported through licensed pipelines, providing more certainty for CCS projects in the Territory to move forward and unlock the next wave of energy, infrastructure and industrial investment,” said Neve.
The legislation also introduces amendments enabling petroleum permits to be divided or amalgamated, offering project proponents greater flexibility to align developments with commercial and technical realities.
Neve said this change would have tangible benefits for how projects are scoped, planned and ultimately delivered.
He said: “Resource developments do not always fit neatly within existing permit boundaries, so these changes will support better project planning, more efficient development and stronger investment conditions in the Territory.”
The reforms come as the Northern Territory positions itself as a major hub for Australia’s future energy supply.
Neve pointed to a combination of geographic, geological and infrastructure advantages that give the NT a competitive edge.
“The Territory is ideally placed to become one of Australia’s most significant energy investment destinations, with the Beetaloo Sub-basin, proximity to growing LNG markets, CCS opportunities and major infrastructure developments,” he said.
The Beetaloo Sub-basin, located approximately 500 kilometres south of Darwin, has been identified as one of Australia’s most prospective onshore gas regions, with the potential to underpin new domestic supply and export capacity as global demand for LNG continues to grow, particularly across Asian markets.
Australian Energy Producers said the passage of the bill reflected a constructive approach by the Territory government to policy development and demonstrated a commitment to creating an environment where complex, long-lead energy projects could proceed with confidence.
“Industry commends the Territory government for continuing to deliver better policy settings to encourage investment and faster delivery of new gas, oil and CCS projects critical to the Territory’s economic growth and long-term energy security,” said Neve.
The amendments take effect following the bill’s passage, with industry expected to begin assessing how the new framework affects project pipelines currently in planning or early development stages across the Territory.
