Fracking of the major Beetaloo Basin gas reserves will be allowed, angering environmental groups

The development of the potentially vast Beetaloo Basin gas reserves has taken a major step forward with the NT government allowing fracking, angering environmental groups.

A worker on an onshore drill rig.

The Northern Territory government will allow fracking in the Beetaloo Basin, potentially paving the way for the development of a world-class gas resource, but angering environmental groups who want any such development blocked on climate grounds.

The chief minister of the NT, Natasha Fyles, on Wednesday released the Final Implementation Report into the Scientific Inquiry into Hydraulic fracturing - the culmination of five years’ work.

The report builds on a scientific inquiry, held in 2018, which concluded that risks posed by the energy industry in the Beetaloo Basin could be managed if its 135 recommendations were implemented.

Ms Fyles said the government would “deliver tough and uncompromising new measures that will create a sustainable environment’’, and also commit $2m a year for the government’s petroleum operations unit to ensure standards were met.

“The release of the Final Implementation Report into the Scientific Inquiry into Hydraulic Fracturing, sets out significantly stronger environmental, cultural, social, economic and health protections in place than existed before the Inquiry was held,’’ Ms Fyles said.

“Gas is the transition fuel that enables renewable energy technology.

“The new industry standards set the bar high with clear expectations and transparency for industry compliance.

“As we move forward, I will continue to listen to and work with Territorians. Together, we will increase local job opportunities, expand the Territory’s economy and maintain our unique culture and environment.’’

Origin Energy's Kyalla well gas site near Daly Waters in the Northern Territory's Beetaloo Basin.

The federal government’s Department of Industry, Science and Resources says the Beetaloo Sub-Basin “has the potential to rival the world’s biggest and best gas resources’’ and provide gas for the next 20-40 years.

Tamboran Resources is the largest acreage holder in the Beetaloo, with about 1.9 million acres of prospective land, and is targeting first production from it EP 98 pilot development by the end of calendar 2025.

Managing director Joel Riddle told The Australian in March - when claims were made that changes to the government’s Safeguard Mechanism would scuttle the project - that it was aiming to be net-zero across the company’s Scope 1 and 2 emissions for the first commercial production of gas.

Tamboran has been marketing Beetaloo as “Australia’s largest green initiative’’.

Empire Energy, which is also targeting gas in the NT, said at the time that with less than 1 per cent of carbon dioxide contained in its Beetaloo gas resource, the challenge of offsetting the emissions of its development was significantly lower than other gas sources.

Greens leader Adam Bandt said at the time that his party’s deal with the Labor government to get the Safeguard Mechanism over the line meant the Beetaloo projects were “derailed” - a claim Mr Riddle said was “100 per cent wrong’’.

Community groups such as the Lock The Gate Alliance and the Arid Lands Environment Centre on Wednesday criticised the NT government’s decision to allow fracking, with Hannah Ekin from the Arid Lands Environment Centre saying the government was putting gas companies ahead of its own people.

“Fracking the Beetaloo will breach Australia’s climate commitments and put the Territory at risk of severe increases in extreme heat, and worsening droughts, floods, and fires,’’ Ms Ekin said.

Tamboran shares were 1c lower at 20c at noon on Wednesday, while Empire stock was up almost 18 per cent at 16.5c.

Originally published as Fracking of the major Beetaloo Basin gas reserves will be allowed, angering environmental groups