14 May 2024

NT Budget underscores importance of gas in bolstering the Territory’s economy

Today’s Northern Territory Budget has highlighted the importance of gas and acceleration of the industry’s net zero initiatives for the Territory’s economy.

“The Budget shows the Territory Government is focused on delivering practical solutions on the road to net zero and underscores the importance of gas in Australia’s energy transformation,” Australian Energy Producers NT Director David Slama said.

“The Budget continues to help progress development of the extraordinary opportunity of the Beetaloo Basin and Middle Arm Sustainable Development Precinct, while reinforcing the economic importance of the Barossa project.”

“The oil and gas industry also supports the Resourcing the Territory exploration program, delivering investment in the NT and supporting new energy supply with all of its benefits.”

Mr Slama said the Budget provided for a more sustainable energy future, while helping secure economic and energy security benefits by developing the Territory’s onshore natural gas resources.

“The Budget invests in the industries and projects required for the energy transformation,” he said.

LNG exports are also confirmed in the Budget as a major economic driver, with “gross state product forecast to grow by 2.3% in the coming financial year, before accelerating to 7.1% in 2025-26 as LNG exports from Barossa come online”.

“Growing LNG demand in our region is an enormous economic opportunity for the Territory and we welcome the Federal Government’s commitment in the Future Gas Strategy that Australia will remain a reliable and trusted trade and investment partner,” Mr Slama said.

“Our LNG exports have an important role to play in the energy security and decarbonisation of our region, in addition to the significant economic and strategic benefits from Australia’s key trading partners.”

Mr Slama said the Territory continues to lead the way in decarbonisation efforts, with welcome support in the Budget to establish a carbon capture and storage (CCS) industry.

“CCS represents a new net zero industry, supporting a least-cost path to net zero and offering significant economic and emissions reduction opportunities for hard-to-abate industries and our region,” he said.