Fast-growing Asian economies led to an increase in gas demand of 2.8 percent in 2024, above the 2 percent average growth rate between 2010 and 2020.

The greater demand necessitating greater supply is a once-in-a-generation opportunity for Australia – and the Territory in particular – to create wealth through a strong, diverse and sustainable economy.

The Territory will not only be able to export increasing amounts of liquefied natural gas to Asia but also be self-reliant for energy security and solve the growing energy crisis on Australia’s east coast.

The Beetaloo, a 28,000 km2 sub-basin lying between Katherine, 100 kilometres to the north, and Tennant Creek, 250 kilometres to the south, is at the heart of the Territory’s gas development.

While the Beetaloo Sub-basin has long been known to have vast gas resources, unprecedented exploration data and two strategic pilot projects have delivered flow results that are exceeding expectations.

In the past 12 months, the gas industry has spent more than $170 million on its exploration and appraisal efforts in the Beetaloo.

And there are more results to come.

To support the development and commercialisation of the Beetaloo sub-basin, the Territory Government has set up a Beetaloo Project Management Office within the NT Department of Mining and Energy.

The PMO will coordinate what will be the key economic focus of the new NT Government and its agencies – to ensure the Beetaloo delivers to its full potential.

Newly-appointed interim Territory Coordinator Stuart Knowles, who has first-hand experience in the gas industry, is tasked with helping to support and expedite projects that are economically significant to the NT.

His focus will be on headline projects that drive private sector investment, create jobs, increase the Territory’s population and advance industry, boosting the NT economy.

But the Territory Government has made it clear that departments will continue to play a critical role in economic development through their own regulatory decision making.

Department of Mining and Energy chief executive Alister Trier says gas is a critical industry to the Territory’s future, and along with mineral development, will underpin economic growth for many years to come.

“Our onshore resources and offshore gas reserves provide energy security for the Territory,
but it is the Beetaloo sub-basin that will ultimately be the backbone of Australia’s energy security,” he says.

The Beetaloo is estimated to hold more than 500 trillion cubic feet of gas, enough to meet Australia’s energy needs for 200 years.

“There has never been a more critical time to push the economic advancement of this region and facilitate gas projects,” says Mr Trier. “And this is exactly what we are doing through the establishment of the Beetaloo Project Management Office – to help private companies get the gas to market.”

Tamboran Resources, the largest acreage holder in the basin with 1.9 million acres, some in joint ventures with Santos, Falcon Oil and Gas, and Daly Waters Energy, expects to produce two billion cubic feet of gas per day from Beetaloo as early as 2030.

The company has signed an agreement with Australian energy infrastructure owner/operator APA Group for the development of the 30 kilometre-long Sturt Plateau pipeline, which will transport gas out of Beetaloo into the Amadeus pipeline.

Tamboran saw excellent flow results at its Shenandoah South 1H well last year, and it is undertaking flow testing of its Shenandoah South 2H well, with first flow results due soon.

It also expects to start flow testing of its Shenandoah South 4H well from June 2025.

Another major Beetaloo operator, Empire Energy, recently secured a new finance package, signaling a major step towards appraisal gas production later this year.

Having drilled the longest lateral well in the Beetaloo sub-basin in late 2024, the Carpenteria 5H well, Empire will use the funding package and its existing resources to stimulate and flow test the well from April this year.

Empire will use this well as a key pillar in its Carpentaria Pilot Production activities to deliver sales gas to the Territory market by the end of 2025, in line with the 10-year binding gas sales agreement it signed with the Territory government.

Empire’s pilot production approvals include up to 10 new wells and by the end of this decade it plans to produce 1 billion cubic feet of gas a day.

In Central Australia, Central Petroleum and its joint venture partners have recently achieved excellent flow
rates from the drilling of two new development wells in the Mereenie gas field in the Amadeus Basin.

Mereenie 29 and West Mereenie 30 are producing 9TJ/day, with the Mereenie Field’s sales capacity now 32TJ/day.

The wells have increased supply into the Territory’s gas market and exceeded pre-drilling expectations with the flow results.

Further wells are now being planned for the Mereenie and Palm Valley gas fields for both local demand and east coast supply.

The Amadeus fields have been producing commercial oil and gas since the early 1980s and in addition to providing energy security, the gas companies have been paying royalties to the NT Government
and Traditional Owners.

Offshore, the multi-billion-dollar backfilling of Darwin LNG by Santos from the Barossa field will extend the life of the plant by 20 years, and create about 600 jobs during construction and 350 during production.

About $2.5 billion worth of wages and contracts will flow to Territorians from the project, with the first gas from Barossa expected to flow into Darwin in the third quarter of 2025.

In other words, the Territory’s future is gas.

Unlike coal and nuclear, gas is flexible – it can be turned on or off in minutes, making it the best backup for renewable energy generation.

World-class experts working on the Federal Government’s Future Gas Strategy found that under all credible net zero scenarios, natural gas will be needed through to 2050 and beyond.

They said that the development of carbon capture, utilisation and storage (CCUS) is an essential component of the fastest pathway to net zero.

CCUS will make an immediate and significant positive impact to the Northern Territory emissions profile, and will play a key role at the Middle Arm Sustainable Development Precinct.

Santos and INPEX are leading the way with their carbon capture and storage projects, and are working
in collaboration with the NT Government on a low emissions hub.

The Middle Arm precinct will also provide the opportunity to import carbon from strategic trading partners that do not have the geology required to store carbon. This will contribute significantly to emissions reduction in the Asia-Pacific region.

The Territory’s gas industry is worth $630 million per year with NT businesses capturing
$95 million from that pool.

With gas set to flow to market later this year, and a Government fully committed to rebuilding the Territory’s economy through world-class resources sector, that pool will develop into a sea of opportunity. TQ