Photo by: Bloomberg
PERTH (miningweekly.com) – The Australian Petroleum Production & Exploration Association (Appea) has called on the Northern Territory government to reconsider its stance on hydraulic fracturing (fracking), saying an onshore gas industry in the region could deliver new sources of stable, long-term revenue for the Territory government.
Speaking at the South East Asia Offshore and Onshore Conference, Appea chairperson Martin Ferguson said that natural gas generated more than 90% of the Northern Territory’s electricity, and that liquefied natural gas (LNG) was the region’s largest export.
“Offshore gas projects such as Darwin LNG, Blacktip and Ichthys have provided the Northern Territory with energy security, valuable infrastructure and a growing oil and gas services sector. But onshore gas developments might be even better.”
Ferguson pointed out that the development of onshore gas resources could spark inland regional development and infrastructure investment, and provide high-paying stable, long-term and non-seasonal jobs.
“In Queensland, the gas industry co-exists with pastoralism, agriculture, tourism and other important industries. This co-existence is not only profitable for the gas industry and landowners, it is also good for regional towns.”
Pointing to data from advisory firm Deloitte Access Economics, which found a Northern Territory onshore gas industry could provide a cumulative boost to gross state product of up to A$22.4-billion between 2020 and 2040, and create up to 6 300 long-terms jobs, Ferguson said that it could also provide between A$236-million and A$460-million a year in government revenue.
“Developing onshore gas would benefit regional areas and Aboriginal communities, and would also create jobs in Darwin and Palmerston. And this gas can supply the hungry east coast market, which would benefit the national economy and the whole country.”
The Northern Territory is, for the second time in three years, conducting an inquiry into fracking, with Ferguson saying that the current inquiry should draw the same conclusions from the evidence as many other inquiries in Australia and overseas.
“Hydraulic fracturing has a long history of safe operations, and the risks associated with it are manageable.
“The key is good regulation, and the Northern Territory is well on the way to developing a world-class regulatory framework. The territory has the opportunity to bed down a science-based regulatory system that ensures safety and sustainability, and encourages cost-effective and timely development of gas resources.
“I hope the Northern Territory seizes this golden opportunity.”