More than any other Australian state or territory, the Northern Territory runs on natural gas.
Natural gas provides 83 per cent of the Territory’s electricity to power homes, businesses and local industries.
According to economic analysis by Deloitte, the oil and gas sector is the Territory’s biggest industry by a considerable margin and has the greatest growth potential.
Deloitte found the Territory’s oil and gas industry could add $6.8 billion a year to the economy and support more than 3000 jobs by the end of the decade, helping grow the Territory’s economy to $40 billion a year by 2030.
Key to realising this potential will be accelerating gas production in the Beetaloo Sub-basin, developing the Middle Arm Sustainable Development Precinct, and investing in carbon capture, utilisation and storage (CCUS) “to enable the NT to meet the growing demand for low carbon energy, both domestically and internationally”.
The Territory’s LNG sector will underpin much of this investment, unlocking new gas supply for the domestic market and injecting billions of dollars a year into the local economy. The NT government forecasts LNG exports will underpin a 7 per cent boost to the economy this year “as Santos’ Barossa project comes online”.
The Territory’s LNG industry is also spearheading Australia’s role as a global leader in CCUS technologies. The Australian government’s recent awarding of Major Project Status to the INPEX-led Bonaparte project acknowledges the potential of CCUS to advance Australia’s low-carbon future and support emissions reductions in our region.
The NT gas sector’s significance extends beyond the Territory’s borders. With eastern Australia facing gas shortfalls from 2028, gas from the Beetaloo Sub-Basin is one of the most significant sources of new supply.
After more than a decade of investment, promising exploration results, and the all-clear from countless environmental reviews and legal challenges, the Beetaloo is on track to deliver first gas from next year.
It is estimated to hold 500 trillion cubic feet of gas – to put that in perspective, that’s equivalent to more than 300 times Australia’s annual gas consumption.
The NT government says the Beetaloo “has enough gas to meet this country’s energy needs for the next 200 years”, while creating thousands of new jobs and injecting billions into the local economy.
However, whether Beetaloo gas can flow east in time to ease supply pressures depends on the collective will of governments to support the necessary approvals and infrastructure.
As the Territory has shown, Australia doesn’t have to choose between the domestic market and exports. Both are needed for a strong economy and a well-supplied domestic gas market.
Australia has enough undeveloped gas resources to sustain our long-term energy needs and remain a reliable energy partner in our region. What’s needed is policy certainty and stability to support investment to bring this gas to market.
The Australian government’s Gas Market Review presents an opportunity to address these barriers to new gas supply and investment.
A well-designed, prospective reservation policy for the east coast that is linked to new supply can be part of the solution. However, it must be backed by actions to address near-term challenges.
Key among these is fixing the broken approvals system that is delaying projects, increasing costs and driving away investment.
Getting this right requires a collaborative approach to deliver enduring and sustainable solutions to future-proof the gas market and break the cycle of short-term fixes and looming shortfalls.
The Territory is leading by example on how to get this done.
