Beetaloo Energy Australia’s final approval expected this week after BUG deal signed

A long-awaited Northern Territory development could be signed-off within days, clearing the way for first gas. Read what’s driving demand.

A final investment decision on Beetaloo Energy Australia’s Northern Territory onshore gas development could be inked as early as this week following the latest NT Government authorisation on Tuesday.

Mining and Energy Minister Gerard Maley approved a Beneficial Use of Gas agreement on Tuesday morning that will allow the NT Government to purchase appraisal gas from BEA’s Carpentaria field.

The government approvals also pave the way for the release by project backers Macquarie Bank of $30m funding, to be released after final investment decision to relocate a gas production plant from New South Wales.

Mining and Energy Minister Gerard Maley with Beetaloo Energy Australia chief executive Alex Underwood.

Beetaloo Energy Australia’s third-quarter report released in October forecast final investment decision would be sought from BEA’s board of directors once final ministerial approvals had been sought.

After the signing, Beetaloo Energy Australia chief executive Alex Underwood flew from Darwin to Sydney on Tuesday afternoon ahead of a BEA board meeting on Wednesday.

“A final investment decision for the Carpentaria Pilot Project will be sought from the Beetaloo Energy Australia Board of Directors once final Ministerial approvals for the pilot project are received,” the third-quarter report stated.

Beetaloo Energy Site visit on Thursday, June 27. Picture: Stephanie Hanlon

BEA’s development ducks have lined up this week, with traditional owners approving the sale of gas from the Carpentaria pilot project after non-binding approvals were acquired in June.

Signing the BUG agreement, Mr Maley said Beetaloo gas would help shore up the NT’s flagging gas supplies on the back of the shutdown of ENI’s Blacktip gas field.

“This is a major milestone in the development of the Beetaloo,” Mr Maley said.

“Gas that would previously have been flared will instead flow directly into the local market from next year.

“This is a big moment for the Northern Territory because it’s more gas coming online. We know the Northern Territory’s facing a gas shortage at the moment and the Beetaloo will literally keep the lights on in the Northern Territory.”

Beetaloo Energy site in June 27. Picture: Stephanie Hanlon

In concert with a similar agreement signed in November with Tamboran Resoureces, Mr Maley said it would begin to replenish depleted gas supplies from next year.

Mr Underwood said Carpentaria’s benefits would be felt Territory wide.

“Today’s agreement is another critical step in the development of the Beetaloo Basin and the Territory’s natural resources and will deliver benefits for all Northern Territorians,” he said.

“Recent agreements we have signed with traditional owners and now the Northern Territory Government will enable our company to move a step closer to delivering energy security for the people of the Northern Territory.

“We are grateful to traditional owners and the government for their support of our project and are committed to working with landowners and local communities to share the economic and social benefits of the development of the Beetaloo’s abundant natural gas resources.”

The quarterly report carried implicit targets that point to the importance of a speedy resolution by BEA’s board around FID.

“Once Beneficial Use of Test Gas approval is received, Beetaloo Energy Australia’s management team will seek approval from the Board to reach a final investment decision for the Carpentaria pilot project, following which Beeetaloo Energy Australia expects $30m for funding under the Macquarie Midstream Infrastructure Facility to become available for gas plant construction.”

In 2023 BEA bought a fit-for-purpose gas processing facility from AGL Limited’s Rosalind Park gas plant in NSW for $2.5m for erection at the Carpentaria field.

Primary contractor Wasco Australia began early works in October.

Gas from the Carpentaria field will be transported to Darwin from the processing plant via the 330km, 168mm-wide PowerWater-owned McArthur River Pipeline, which can carry 15TJ/day to APA Group’s Amadeus Gas Pipeline.