Middle Arm funding to be honoured in $2.5bn cash splash for the Territory

Some big-ticket funding commitments have been confirmed ahead of the federal government’s new Budget. Here’s what’s promised for the Territory.

Almost $2.5bn is earmarked for Territory infrastructure in the Albanese government’s first Budget, which is set to honour one of the Coalition’s big-ticket promises for the Top End.

Ahead of the Budget’s release on October 25, the federal government has revealed details on the cash splash – more than half of which will be spent on the Middle Arm industrial precinct.

Solomon MP Luke Gosling said the sustainable development precinct would be a “huge opportunity” for the Territory.

“We are delighted to deliver on almost $2.5 billion of election commitments for vital infrastructure projects in the Northern Territory, including $1.5 billion for the Middle Arm Sustainable Development Precinct,” Mr Gosling said.

Solomon MP Luke Gosling said the federal government’s $1.5bn investment into the Middle Arm precinct is “really significant”. Picture: Keri Megelus

“This project, which is focused on assisting emerging clean energy industries, will also help our nation find new export opportunities for green hydrogen and critical minerals and environmentally sustainable manufacturing.

“It will of course need to pass all relevant federal and Territory environmental approvals.

“We’ll work with the Northern Territory government, industry, the local community and the Larrakia to develop a sustainable growth plan for Middle Arm, creating opportunities and improving life for all Territorians.”

The former Coalition government first promised the $1.5bn investment but copped criticism for ignoring the NT government’s plans and spruiking the facility to be a second port for Darwin.

The NT government has granted a geothermal exploration permit to drill a well at Middle Arm. Picture: Supplied

After Labor’s federal victory, the new Northern Australia Minister Madeleine King told the NT News the Coalition did not take the time to work out what it was actually committing to.

However, the Albanese government’s matched commitment is described to support “the construction of common user marine infrastructure,” as well as emerging clean energy industries.

“Through its first Budget, our government is getting on with the job working collaboratively with all levels of government and in consultation with Infrastructure Australia to deliver projects that will make a real difference to the lives of all Australians,” Ms King said.

Middle Arm is already home to an export hub for liquefied natural gas (LNG). Picture: Glenn Campbell

The Budget is also set to include $440m in planned equity to support the development of NT regional logistic hubs.

A further $682m will be spent on NT roads, with about half of those funds to seal the Tanami Road and upgrade the Central Arnhem Road.

Chief Minister Natasha Fyles said the Budget backed the NT government’s infrastructure plans.

“This is what quality planning and development of new and emerging industries looks like,” Ms Fyles said.
“The Federal government believes in the Middle Arm Sustainable Development Precinct – making things on home soil.

“We will get more bitumen laid with the federal government coming to the table and backing our vision of a connected Territory.

“When our regions are accessible we see greater outcomes in health, education and resilience in our communities.”

Prime Minister Anthony Albanese and his government’s new budget is focused on spending that is “responsible, affordable and sustainable”. Picture: Glenn Campbell

Among other major pledges of the former federal government was $2bn of extra funding into the Northern Australia Infrastructure Facility.

But with a new Treasurer now in charge of handing down the Budget this October, Jim Chalmers’ stance on the Coalition’s promise remains to be seen.

“We’re going through an audit of all things that were promised in the election period,” Ms King said to the NT News in July.

“I expect and I’m fighting for that extra bit of the facility to remain in place.”

Further announcements on the delivery of the Middle Arm funding is expected next year.

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Originally published as Middle Arm funding to be honoured in $2.5bn cash splash for the Territory