Steps taken to guarantee the Northern Territory’s gas supply


The Commonwealth Government and Northern Territory Government have yesterday signed a Memorandum of Understanding (MOU), taking an important step towards guaranteeing the Northern Territory’s gas supply is secured for the future.

Image courtesy of [dan] /
Image courtesy of [dan] /

“This MOU is an important means to help promote the Northern Territory’s future economic prosperity. Both the Commonwealth and the Northern Territory Governments recognise the critical importance of supporting the Territory to achieve its full economic potential and we are determined to play our part in facilitating an effective outcome, ” Resources and Energy Minister Gary Gray said yesterday.

Chief Minister of the Northern Territory, Adam Giles, believes gas to Gove would further encourage investors who choose to do business to develop Northern Australia.

“Onshore gas exploration is speeding up and the potential in the Territory is remarkable. The Territory needs to be known as a safe, free-market jurisdiction and a place to do business.” Mr Giles said.

In March, Pacific Aluminium welcomed an announcement from the Commonwealth Government that it will continue working with Rio Tinto and Pacific Aluminium to provide support for financing of the Katherine to Gove Gas Pipeline.

The Northern Territory Government revealed, the MOU will underpin an active and co-ordinated approach to promoting the exploration and timely development of offshore and onshore gas resources. With its objectives being:

  • To ensure long term secure gas supply for the Northern Territory, in particular to facilitate the supply of gas for domestic and commercial use for all customers in the NT, including Rio Tinto’s Gove Alumina refinery;
  • To reduce the risks associated with gas supply security in the Northern Territory due to exploration and development not meeting demand; and
  • To encourage competition between gas suppliers for the benefit of consumers and thus avoid an artificial or distorted gas market within the Northern Territory.

“Businesses and communities need certainty of energy supply and a competitive energy market if they are able to prosper into the future. Today’s announcement is an important step towards delivering greater energy certainty to all Northern Territorians,” Mr Gray said.