Activists trying to halt the job-creating Middle Arm industrial development and who are scaremongering and spreading misinformation among Traditional Owners about Beetaloo should take heed of the failed Barossa project challenge in the Federal Court. The findings have set the standard of proof required to support an assertion that a project is likely to cause a significant risk to Aboriginal cultural heritage.

The Territory needs to realise our gas resource to move forward.

The first recorded discovery of petroleum in Australia was made in 1839 by members of the crew of HMS Beagle who were commissioned to survey large parts of the coast of Australia’s north. Oil was discovered when digging for water beside an estuary of the Victoria River. It is documented in the ship’s journals that a bituminous substance – that “ignited quickly when put into the flame of a candle” – was encountered at a depth of seven metres from the surface in two large wells sunk to obtain fresh water.

MR IAN TUXWORTH, MINISTER FOR MINES AND ENERGY, NORTHERN TERRITORY GOVERNMENT, OPENING PALM VALLEY GAS PIPELINE, CENTRAL AUSTRALIA. TOGETHER WITH MEMBERS OF LOCAL ABORIGINAL GROUP

It took nearly 110 years before large-scale petroleum exploration commenced at Amadeus basin in Central Australia. Activity ramped up in the 1950s and the first onshore well (Ooraminna-1) was drilled in 1963. Mereenie oil and gas field, 240 kilometres west of Alice Springs, was discovered in 1964, which encouraged further exploration, leading to the discovery of the Palm Valley gas field, 120 kilometres west of Alice, a year later.

Development of the reserves and further exploration in the basin were hampered by low oil prices and land access problems. Active exploration resumed in 1980, leading to the discovery of the Dingo gas field in 1981.

Amadeus basin has produced nearly 500 billion cubic feet of gas over its life, creating vital local jobs and significant economic activity for Central Australia. The recent drilling program, West Mereenie -29 and -30, is expected to increase near-term gas production rates from the existing fields.

Mereenie production began in 1984 and increased following the completion of a pipeline to Alice Springs in 1985. Palm Valley began supplying gas to the Ron Goodwin power station in Alice Springs in 1983. In 1987, a major pipeline connecting Palm Valley and Mereenie fields to Darwin started to supply gas to Darwin, Tennant Creek and Katherine.

Shale gas was discovered at Beetaloo sub-basin, which covers 28,000 square kilometres, in the 1980s. Exploration didn’t commence until 2000 and the first unconventional gas well fracture stimulation in 2011.

The Northern Gas Pipeline is a 622 kilometres gas transmission pipeline between Tennant Creek and Mount Isa. The pipeline, which is owned by Jemena and links the formerly separate northern and eastern gas markets, started commercial operations in January 2019.

In 2016, a moratorium on onshore unconventional gas began and was lifted two years later following the 135 Pepper Inquiry recommendations were accepted by the Northern Territory Government. In 2023,
the Hydraulic Fracturing Final Implementation Report was released, meaning applications for production licences at Beetaloo could be made.

OIL DERRICK, NORTHERN TERRITORY, CA. 1912

It is estimated that Beetaloo contains 500 trillion cubic feet of gas, more than 1000 times the annual domestic consumption in Australia. The project is expected to create more than 13,000+ jobs and over $17 billion in economic activity in the NT over 25 years. It is situated in a relatively sparsely populated area where fewer than 1500 people live in the rural communities, including Mataranka, Jilkminggan, Larrimah, Daly Waters, Dunmarra, Newcastle Waters and Elliott.

Santos and Tamboran Resources have joined forces on a multi-billion-dollar quest that should result in thousands of new jobs and another large processing unit at Darwin LNG.

This growing expansion further supports the development of Middle Arm Sustainable Development Precinct, which provides LNG expansion, gas-based processing and advanced manufacturing sector development opportunities.

In the 2016 census, the region’s unemployment rate was almost double the Territory’s rate and historically there have been few labour market opportunities outside of the pastoral industry until now.

Offshore activity really began with the discovery of Bayu-Undan field, 500 kilometres from Darwin, in 1995 followed by ConocoPhillips planning to build the Darwin LNG plant at Wickham Point. Construction began in 2003 and production in 2006, making ConocoPhillips the second operator of an LNG plant in Australia.

In 2019, ConocoPhillips sold the operation to Santos for US$1.265 billion as well as a contingent payment of US$200 million, which gave Santo’s control of offshore assets in Bayu-Undan, subsea assets in the Timor Sea and the onshore gas plant. Santos is now developing the Barossa field, 300 kilometres north of Darwin. The $4.7 billion project has created about 600 jobs during construction and will provide 350 jobs during operation for 20 years.

The offshore LNG Ichthys field was discovered in 2000 and Black Tipi in 2001. INPEX began exporting gas to Japan from its $5 billion Darwin plant in 2018. The plant has the capacity to produce up to 9.3 million tonnes of LNG per annum, 1.65 million tonnes of LPG per annum and up to 100,000 barrels of condensate per day. In November 2022, INPEX committed to expand the plant by developing a third production train.

Offshore activity continues with the Sunrise development , which is made up of the Sunrise and Troubadour gas and condensate fields, collectively known as Greater Sunrise.

The Territory has experience with 30 years offshore and 40 years onshore of actual projects that have already been realised in the oil and gas resource space. Not forgetting the Northern Territory was the site of the first oil discovery in Australia in 1839, 30 years before Darwin (then named Palmerston) was settled in 1869.

The Territory’s world-class gas resources are considered one of our strongest advantages and a recognised priority growth sector with over 126 countries committed to 2050 net zero emission targets.

The Territory is already Australia’s third largest LNG producer, with gas exports generating more than 20 per cent of the Territory’s gross state product and supporting Australia as the largest global exporter of LNG in the world. TQ

FUN FACTS
A fully fracked well can use between 20-30ML of water. Beetaloo and Mungabroom pastoral stations carry about 85,000 head of cattle, which consume about 1241ML water per year, enough to service 41 fully fracked wells.

About 2 hectares is cleared for an exploration well. If a well goes into production an area of about 200 square metres remains cleared and the rest rehabilitated. The impact of a 200 square metre footprint is not dissimilar to the footprint of cattle watering points, such as bores, tanks, troughs or dams – on pastoral properties.

There are an estimated 1 million mango trees in the NT. With an average water usage of 53,850ML per year, the mango industry uses as much water as 1,795 fracked wells (Based on 30ML of water). This does not consider water wastage from leaking pipes or tanks and natural evaporation from dams or water ways etc.