NT government’s ‘absolute’ support for gas industry tops agenda as Chief Minister Eva Lawler plans for Japan

New Chief Minister Eva Lawler has sat down with the NT News to talk about hopes for a rescheduled Japan trip, economic challenges, and why she unreservedly backs gas.

Chief Minister of the Northern Territory Eva Lawler. Picture: Pema Tamang Pakhrin

Plans for Eva Lawler’s trip to Japan have been postponed due to the unfolding weather emergency in the NT, but the Chief Minister maintains that cementing investment will be a focus under her leadership.

She was due to fly out on Sunday night, but cancelled the trip last minute to ensure supplies are able to get into the Territory after flooding cut off the Stuart and Victoria highways and a portion of railway.

While Ms Lawler’s top priority for the Japan trip, expected to be rescheduled in the coming months, is to shore up the NT’s multi-billion dollar relationship with gas giant Inpex, she also hopes to signal to foreign investors that the Territory’s natural resources are open for business – whether Teals like it or not.

During the trip she will meet with Inpex’s chief executive to reassure him continued expansion in the Territory, such as a third LNG train planned at the Ichthys project, remains a secure investment.

Inpex CEO Takayuki Ueda touring the Ichthys LNG processing facilities at Bladin Point in 2019. Picture: Katrina Bridgeford.

“Inpex have expressed concern over the last 12 months to the federal government around that certainty and surety around the gas industry,” Ms Lawler said.

“This is important for me to give them that surety, to show that we value the work they do and our government absolutely supports the oil and gas industry.”

While in Japan Ms Lawler will also hold a business round table highlighting opportunities in the NT, speaking to companies including Mitsubishi and Tokyo Gas, and key sectors including clean energy, infrastructure and critical minerals.

“My main focus is to come back to the Territory with tangible outcomes, whether that be more investment opportunities, more projects, or more connections which benefit local business,” she said.

The Territory’s economy took a noticeable hit when Inpex shut down for scheduled maintenance last year. Picture: Glenn Campbell

In 2022-23 the value of goods NT exports to Japan increased by 27.3 per cent to $7.7bn, driven in no small part by Inpex which supplies 10 per cent of Japan’s annual LNG needs.

Ms Lawler admitted there was “absolutely” a need to diversify the economy, pointing to a “considerable” drop in last year’s Gross State Product due to planned maintenance shutdowns at Inpex.

Diversifying was something her government had “worked hard” to do, she said, pointing to the Defence industry and efforts to grow other oil and gas investments such as Santos’ Barossa pipeline and Tamboran’s fracking in the Beetaloo.

“We must not let the momentum of major projects and investment stall, travelling to Japan and having face-to-face meetings will allow for projects to progress rapidly,” she said.

“The NT is still a frontier … people who then back these opportunities do take risks,” Chief Minister Eva Lawler said. Picture: Pema Tamang Pakhrin

Looking at a list of the Territory’s 14 major projects, however, suggests a business environment where delays and uncertainty are more common than not.

When Labor took power in 2016 there were six projects on the list, and more than seven years later just one of them, Alice Springs Hospital accommodation, has been delivered.

Ms Lawler shrugs it off – that’s the nature of business, and particularly business in a frontier town.

“What we do as a government is we facilitate those projects,” she said, “but it is up to those major projects, their businesses, to do the work.”

“Worldwide we’re seeing a difficulty around getting financed … it really is usually finance that holds those projects up and that’s the work that they have to do themselves, we can’t do that for them.”

Major projects collapse all the time in states like New South Wales and Victoria, Ms Lawler said, it just stands out more in the Territory’s smaller economy.

“That said, the Northern Territory is still a frontier, really … we’re very different to those states and the people who then back these opportunities do take risks,” she said.

“That’s the exciting part about the Territory, you’ve got people that are willing to give it a go.”

Federal protest movements against gas expansion in the NT have been growing. Picture: NCA NewsWire / Martin Ollman

The Territory’s pro-gas agenda has drawn scrutiny from Teal politicians and environmental groups calling for rapid phase out of fossil fuels, but Ms Lawler played down the criticism.

“We’ve got better checks and balances in place for our onshore oil and gas industry than probably anywhere else in the world,” she said.

“You do need to have gas as a transition fuel for the world, and we know we’ve got those reserves.

“All of those industries know they’ve got to get to net-zero, we do too, so does Australia.”

Could environmentalists pull votes from Labor come the August election?

“Possibly,” Ms Lawler admitted.

“If the Greens and the Teals want to come to the Territory, good on them. But it’s not easy, it’s not easy. It’s not the same as Melbourne, that’s for sure.”

Originally published as NT government’s ‘absolute’ support for gas industry tops agenda as Chief Minister Eva Lawler plans for Japan