Once final approvals are obtained, Empire is set to begin a pilot project that will demonstrate that the Beetaloo’s shale gas resources can deliver much needed energy to the Top End and generate wide benefits for Territorians.

The Beetaloo Basin, approximately 750 kilometres to the southeast of Darwin, is estimated to be the largest shale gas resource outside North America. Deloitte Access Economics has indicated that the development of the Beetaloo could inject as much as $17 billion and 6,000 jobs into the Northern Territory economy over the next 20 years.

Empire’s project took a big step forward two months ago, when the company signed a binding long-term gas sales agreement with the NT Government. Under the agreement, the company’s Carpentaria pilot project will supply up to 25 terajoules (TJ) of gas per day for 10 years commencing next year.

The deal could see an additional 10 TJ+ per day supplied to the NT for up to 10 years if production levels from the Carpentaria project exceed 100 TJ per day.

The 25 terajoules a day in the base agreement is enough gas to generate half Darwin’s electricity demand.

Empire managing director Alex Underwood says 2024 stands to be the year the Beetaloo moves from potential to reality, after years of effort.

“We have been actively pursuing production from the Beetaloo Basin since 2011, with support from the NT Government for this objective since 2018,” he says.

Development of the Beetaloo’s gas resources was stalled in 2016 when the newly elected Labor government imposed a moratorium on onshore gas development while a comprehensive scientific review took place. Implementing the recommendations of that review took a further four years and delayed assessment of projects in the basin.

Mr Underwood says it was very pleasing to see both sides of politics support gas development in the recent NT election and welcomed new Chief Minister Lia Finocchiaro’s commitment to working with the industry.

The gas sales agreement, and final approvals from the government and Traditional Owners, is expected to see Empire being the first company to provide gas supply from the Beetaloo.

see Empire being the first company to provide gas supply from the Beetaloo.

Mr Underwood says the gas sales agreement and the expected final investment decision on the pilot project came at a critical time for the energy security of the NT.

“The project demonstrates our commitment to providing energy for Territorians and will facilitate hundreds of millions of dollars of investment into the NT economy,” he says. “Our project will provide local jobs, support NT businesses, and create direct revenue streams for Traditional Owners and the NT Government.”

Mr Underwood says Empire has an outstanding environmental and safety track record in the NT and a long history of respectful engagement with traditional owners over the last decade.

“We look forward to working with traditional owners, local communities and all Territorians to deliver this exciting project.”

While the first gas production from the Beetaloo will initially be made available to existing gas users in the Northern Territory, after the initial pilot phase it may increase to exceed the requirements of those customers and become available to east coast Australian gas users, new gas users in the NT and to augment LNG exports out of Darwin.

“The Beetaloo should be really transformational for the NT,” Mr Underwood says.

“With abundant onshore and offshore gas resources, Darwin could become a very attractive location for manufacturing businesses and other industries that rely on secure and affordable gas supply.

“The consequent economic benefits will be enormous, but investors in those businesses will need to have confidence that gas supply will be secure.”

Mr Underwood says this in turn will require that investors in gas production have confidence that exploration and development activities will continue to be supported by Territory and Federal governments, and the industry operates under a regulatory framework that is efficient and effective in protecting the environment and enabling timely delivery of approved projects.

“With the good will we are seeing in Darwin and in Canberra, we are confident this can be achieved, but government and industry have to work together to ensure the economic and environmental benefits of development are not lost.”

With many major Asian economies traditionally dependent on coalfired power generation, the region will require more gas use as it decarbonises. These economies also have mid-century net zero emissions targets, making Beetaloo gas additionally attractive given its very low in-situ CO2 levels.

“The economic, energy and social benefits of natural gas resource development are substantial, including for the Traditional Owners and local communities who host that development,” Mr Underwood says.

“Successful development requires a collaborative partnership between gas exploration and production companies, governments who own the resources on behalf of their citizens and regulate all activity, traditional owners, native title holders, land users and local communities.”

“Empire Energy is committed to continuing this collaborative approach.”