Opinion article by Samantha McCulloch on how natural gas is powering the Territory – and Australia’s future

Opinion article in the NT News by Samantha McCulloch, Chief Executive of Australian Energy Producers

The Northern Territory’s natural gas industry is on the cusp of some major milestones that have the potential to transform the Territory and the nation’s economic and energy security.

This is good news for Territorians because, more than any other Australian state or territory, the NT runs on natural gas. 

Beyond the sector’s enormous economic output, natural gas literally keeps the lights on, providing 83 per cent of the Territory’s electricity to power homes, businesses and local industries. 

Meanwhile, the NT Government forecasts LNG exports will underpin a 7 per cent boost to the economy this year “as Santos’ Barossa project comes online”. 

The Territory’s gas industry is also spearheading Australia’s role as a global leader in carbon capture, utilisation and storage (CCUS) technologies. The Australian Government’s recent awarding of Major Project Status to the INPEX-led Bonaparte project acknowledges the potential of CCUS to advance Australia’s low-carbon future.

The strength of the NT gas sector is also welcome and timely news for eastern Australia, which faces gas supply shortfalls from 2028 unless new sources of gas come online.

Key among the potential sources of new gas supply is the Beetaloo Sub-basin. After more than a decade of investment, promising exploration results, and the all-clear from countless environmental reviews and legal challenges, the Beetaloo is on track to deliver first gas from next year.

The NT Government says the Beetaloo “has enough gas to meet this country’s energy needs for the next 200 years”, while creating thousands of new jobs and deliver billions to the local economy. 

Whether Beetaloo gas can flow east in time to ease supply pressures will depend on the collective will of governments to support the necessary approvals and infrastructure needed.

The Australian Government’s Gas Market Review presents an opportunity to address these barriers to new gas supply and investment. Australia has enough undeveloped gas resources to sustain our long-term energy needs and remain a reliable energy partner in our region.

What is needed is a collaborative approach to deliver enduring and sustainable solutions to future-proof the gas market and break the cycle of short-term fixes and looming shortfalls.

A prospective reservation policy for the east coast that is linked to new supply can be part of the solution, but it must be backed by actions to address near-term challenges.

This should include reforms to encourage more investment, streamline approvals, remove reporting duplication, and facilitate expanded gas pipeline and storage capacity. Actions must also support a robust LNG sector, which as the NT has shown, goes hand-in-hand with a well-supplied domestic market.

The Territory is leading by example on how to get this done – and the gas industry stands ready to deliver.