PERTH (miningweekly.com) – The Australian government on Thursday announced plans to accelerate gas exploration and development in the Northern Territory’s Beetaloo sub-basin, providing up to A$50-million for exploration taking place before the end of June 2022.
Federal Resources Minister Keith Pitt said that the push for exploration was hoped to create thousands of jobs, provide significant economic benefits to the region and ensure Australia remains a world leader in the production of natural gas.
Pitt said the government’s approach would speed up exploration and production in the Beetaloo by around two years.
“The funding will fast track drilling by providing grants to cover 25% of eligible exploration costs, capped at A$7.5-million per well and three wells per exploration venture.
“The Beetaloo Basin has been described as the ‘hottest play on the planet’ with the potential to be a world-class gas resource, transform the Northern Territory economy and generate 6 000 jobs by 2040.
“The Northern Territory’s Geological Survey estimates the sub-basin could hold more than 200 000 petajoules of gas. Even if only a very conservative 10% of that gas was recovered, it could still supply Australia’s domestic gas demand for more than 10 years,” Pitt said.
“Industry analysis estimates the development of the sub-basin could increase economic activity by between A$18-billion and A$36.8-billion over the next 20 years,” he added.
The Beetaloo Strategic Basin Plan is a key early step in the gas-fired recovery agenda, and is the first of five plans to be delivered under the A$28.3-million Strategic Basins Plan program announced in the October Budget.