Historic start to onshore gas drilling in Beetaloo Basin

THE drilling of the first gas well in the Beetaloo Basin has begun, marking what the NT business community is hoping will be the start of a multi-billion dollar onshore gas industry

Kyalla 117, 600km southeast of Darwin, between Daly Waters and Elliott, is the first of two new Origin Energy appraisal wells to be drilled to help determine the potential of the resource in the Beetaloo Basin. Picture: SUPPLIED

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THE drilling of the first gas well in the Beetaloo Basin began on Wednesday marking a historic day for the Territory and what the NT business community is hoping will be the start of a multi-billion dollar onshore gas industry.

Kyalla 117, 600km southeast of Darwin, between Daly Waters and Elliott, is the first of two new Origin Energy appraisal wells to be drilled and fracture stimulated to help determine the potential of the resource in the Beetaloo Basin.

The Australian Petroleum Production and Exploration Association, NT Resources Minister Paul Kirby and Origin Energy have all hailed the resumption of on-ground work in the Beetaloo Basin as a major milestone.

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APPEA NT spokesman Keld Knudsen said the Northern Territory’s onshore gas industry was looking forward to getting back to work after three years of minimal activity and exploration.

“The NT’s abundant natural gas resources can play a vital role in revitalising the Territory’s economy,” he said

Mr Kirby, who is attending the Australia-Japan Joint Business Conference in Osaka, said there were a number of companies at the conference that have expressed interest in the Beetaloo Basin.

“I’ve been able to explain to them that we have worked our way through the scientific inquiry, the regulations are in place and people are working to make sure new industries have the right ability to get started in the right terms and conditions,” he said.

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“The Chief Minister and I have met with different companies that are interested in expanding their businesses into the Northern Territory because they just can’t get access to the energy market in those eastern states. It is something that resonates with people attending the conference.”

Origin general manager for the Beetaloo and growth assets, Tracey Boyes, said tens of millions of dollars had already been awarded in local contracts and more than 50 Territorians were currently working on the project.