Today’s approval for developing the Beetaloo Basin would create thousands of jobs, invest millions in regional communities, and strengthen east coast energy security, according to the Australian Petroleum Production & Exploration Association (APPEA).
APPEA noted the Northern Territory (NT) Government‘s adherence to the 2018 Pepper Inquiry recommendations provided safe, environmentally-friendly, stakeholder-consulted onshore development.
“This is the beginning of a new wave of prosperity for the Northern Territory and Australia, delivering new jobs and substantial economic benefits while strengthening east coast energy security,” APPEA NT Director David Slama said.
Slama stated that Darwin and outlying areas like Katherine and Tennant Creek will benefit from Beetaloo Basin investment and jobs thanks to the NT’s support.
“Gas is already so crucial to the NT economy – employing 11,000 workers along the supply chain, enabling about $19 billion of economic activity annually – and our commitment to working with regional communities will ensure the benefits will continue to be shared,” Slama added.
Beetaloo development, depending on its magnitude, may provide up to 6,300 jobs, a $1 billion boost in State Government revenue over 20 years, and $22.4 billion in NT economic growth (measured by gross territory product) by 2040.
Slama said the sector was a key investment in decarbonisation and renewables, developing net zero technologies including CCS and low-carbon hydrogen for the Middle Arm Sustainable Development Precinct near Darwin.
“The NTG decision follows the facts and science to get the best outcome for the NT while recognising the important role of gas in a cleaner energy future – backing up renewables, kick-starting low-carbon hydrogen and supporting major industries like manufacturing,” he stated.
According to him, completion of the recommendations was important so development could proceed in a responsible and environmentally safe way in a robust regulatory environment and in collaboration with landholders and Traditional Owners.
“More than a dozen inquiries and reviews – including the Pepper Inquiry which took 15 months, received 1,250 submissions, held more than 150 public hearings and over 50 community forums – have established that any risks associated with hydraulic fracturing can be safely managed,” he added.
APPEA Chief Executive Samantha McCulloch said increased gas supply was crucial to a long-term price reduction and east coast energy security.
“The Beetaloo Basin is a major new gas supply opportunity in Australia and today it is a big step closer to realising the extraordinary economic benefits,” McCulloch stated.
McCulloch noted that the east coast energy system stresses last winter revealed the long-term underinvestment in gas supplies due to southern state prohibitions and regulatory uncertainties. Over the past five years, she said the Beetaloo Basin has progressed under a stable long-term policy environment that has allowed companies to invest millions in exploration, benefiting remote regional communities.
“This is the kind of policy environment needed on the east coast in states like New South Wales and Victoria to avoid forecast shortfalls in coming years and ensure gas can play a critical role in the transformation of our energy system for net zero,” McCulloch added.
