The NT’s two largest projects – Beetaloo and Barossa – are creating all the essentials for economic growth: taxes, royalties, jobs, training and lucrative work for local subcontractors, which are often family-run businesses.

Beetaloo, a massive onshore venture that is already driving solid economic upturns in regional communities,
has the cleanest natural gas in the world – 500 trillion cubic feet of it.

That’s more gas than the US Marcellus shale project, which has slashed power prices, boosted state economies and supported up to 200,000 jobs.

Beetaloo could power Australia’s homes and industry for 200 years.

Tamboran Resources has achieved a Beetaloo record average 30-day initial production flow rate of 7.2 million cubic feet per day from its Shenandoah South 2H sidetrack well.

The result marks a significant milestone for the company, aligning closely with the performance of wells in the prolific Marcellus.

Santos is spending $6 billion on opening the Barossa gas reservoir to backfill the Darwin LNG plant, which already supports hundreds of jobs and pumps several hundred million dollars into the local economy every year.

The resources giant hopes Beetaloo will be connected to the Darwin plant, where a second production train could be built – creating even more jobs.

Santos managing director Kevin Gallagher says Beetaloo has the potential to be “transformational”.

“This is something where you have hundreds of millions of dollars investment every year, big drilling campaigns, year on year, sustaining production growth, production for decades to come, creating high-paid jobs, transforming communities. That’s exciting.”

And on top of this, the industry hopes that INPEX, which employs several hundred Territorians and contributes about $500 million to the local economy every year, will build another $2 billion production train at its plant at Blaydin Point within the next few years.

No wonder the Territory is attracting attention around the world.

Territory Chief Minister Lia Finocchiaro told the Australian Energy Producers annual conference: “It is clear that momentum is building, and all eyes are looking north to the Territory.

“Territorians know that we have everything this country needs to deliver affordable, reliable and cleaner energy.”

A report by Rystad Energy points to Beetaloo as the way to lower power prices.

It says regulators continue to “expect a miracle” in Australia’s East Coast gas market – sustainably lower gas prices without increasing gas production.

“The surest guarantee of lower domestic prices is through increased investment in supply, underpinned by long-term demand certainty from LNG exports.”

The investment potential in the Territory’s gas industry is exciting some of the world’s biggest players.

Australian Energy Producers NT director David Slama says: “Not only are we seeing other states wake up to the potential of tapping into the NT, we are seeing long-term experienced oil and gas companies looking to the Territory for the next wave of gas production globally.”

The NT Government’s crackdown on lawfare – a tactic used by some environmentalists to thwart wealth-creating gas projects – and the appointment of Stuart Knowles as Territory Coordinator have been welcomed by the industry.

Mr Slama says streamlining regulatory approvals for projects of economic significance will help fast-track
new gas supply and investment for the Territory’s long-term energy security and economic prosperity.

And Australian Energy Producers chief executive Samantha McCulloch says: “The NT Government recognises natural gas is essential to the Territory’s economic growth and energy security, powering homes and industry, and supporting thousands of local jobs.

“Projects such as the Barossa development and the Beetaloo basin are key to accelerating economic growth and delivering reliable and affordable energy for Territorians.”

The NT Budget confirms that natural gas is driving the Territory’s economy, which is forecast to grow by 7.8 percent in 2025-26 and 5.9 percent the following year as LNG exports from Barossa begin later this year.

In stark contrast, the NT’s economy contracted by 5.3 percent in 2022-23 due to a decline in LNG exports – caused by the winding down of Darwin LNG and planned maintenance works at INPEX’s $60 billion Ichthys LNG, the largest capital project in the Territory’s history.

“When the gas and LNG sector is booming, so too is the NT economy,” says Mr Slama. “And when the gas sector sneezes, the Territory’s economy catches a cold.

“Implicit in this is that for a strong Territory economy we need a strong domestic and export gas industry.

“More than any other state or territory in Australia, the Northern Territory runs on natural gas.

“Natural gas generates more than 83 per cent of the Territory’s electricity and underpins billions of dollars in annual economic activity, while supporting thousands of local jobs.”

He says claims that the Territory does not need new gas projects are “plainly absurd”.

Mr Slama says the Australia Institute, a Greens-aligned think-tank, “willfully misrepresents” the gas industry’s tax and royalty contributions.

The Australian Taxation Office says oil and gas companies are among the largest taxpayers in Australia.

In 2023-24 alone, Australian gas companies paid $17.1 billion in taxes and royalties to state, terrritory and federal governments.

At a local level, economic analysis by ACIL Allen says the INPEX-operated Ichthys LNG will contribute $73.1 billion in taxes and royalties between 2012 and 2050 – and that every job INPEX creates in Darwin over the decade to 2030 will generate an additional 2.2 new full-time jobs across the economy.

As Mr Slama says: “Territorians know it’s gas that is keeping the lights on – and that for a strong economy we will need much more of it for decades to come.”