PERTH (miningweekly.com) – The development of shale and tight gas resources in the Northern Territory could add a combined A$22.4-billion to the state’s economy over 20 years and create an additional 6 300 jobs by 2040, a new report has revealed.

The report, compiled by advisory firm Deloitte Access Economics and commissioned by the Australian Petroleum Production & Exploration Association (Appea), examined two potential growth scenarios based on the supply of shale and tight natural gas to the Northern Territory, east coast and export markets between 2020 and 2040.

Under the highest growth scenario examined, it was estimated that the shale gas industry could provide nearly A$1-billion in revenues to the Northern Territory government between 2020 and 2040.

Appea CEO Malcolm Roberts said on Wednesday that the report confirmed shale gas had the potential to generate significant long-term economic benefits for the state.

“The [Northern] Territory economy is already outperforming much of the nation thanks to the development of the Ichthys liquefied natural gas (LNG) project in Darwin and investment in other natural gas projects,” he pointed out.

“While still in its very early stages, shale gas could underpin a new wave of investment delivering jobs and economic opportunities for decades to come.”

According to the Northern Territory Geological Survey, the state had a shale gas resource of some 234-trillion cubic feet, of which 119-trillion cubic feet related to basins lying solely inside of the state borders, while the remaining resources were shared with other states.

“Shale gas could become the industry that reinvigorates regional centres such as Alice Springs and Katherine and provides new training and employment opportunities in indigenous communities.

“It could also become a game-changer for future Northern Territory governments by delivering a new source of revenue to fund better services and develop infrastructure across the [state],” Roberts said.

While the Deloitte report made note of the vast shale gas resources available in the state, it did note that the development of these resources, and their economic viability, would depend on the cost at which the projects could be developed.

Roberts added that, while the benefits of shale gas could be significant for the Northern Territory, the successful development of the shale gas industry could not be taken for granted.

He noted that the recent collapse in the international oil price had put all gas developments in Australia and around the world under pressure. Proponents and governments must now work harder to reduce costs and attract new investment.

“The Northern Territory must provide a stable, secure and competitive investment framework if it wants to turn its shale gas resources into jobs, royalties and exports,” Roberts said.