Diesel in the mix as NT gas supply remains under threat

The Northern Territory sits between two of the world’s largest untapped gas provinces, yet it is “scratching” for every last molecule. Read how this happened.

Despite having two of the world’s largest gas reserves within a 500km radius of Darwin, the NT Government is considering using diesel to generate electricity if the Territory runs out of gas.

Environment Minister Kate Worden made the admission this week when answering questions about the Territory’s capacity to avoid future blackouts.

Up to 20,000 Power Water customers were without electricity for several hours on Monday evening after a pipeline disruption caused blackouts between Darwin and Katherine.

Pipeline infrastructure company APA later issued a statement acknowledging “an event” that contributed to the blackout.

On Tuesday morning, chief minister Eva Lawler said the NT was sourcing gas from Santos’ depleted Bayu Undan field in the Timor Sea.

This is because Black Tip, the ENI owned and operated gas field in the Bonaparte Gulf about 100km off the Territory coast, is not delivering the necessary quantities of gas to power the Top End.

The commercial arrangement began in November when Bayu Undan’s production rates dropped below export operability and is temporary because there are limited supplies.

Inpex supplies emergency gas to Power Water as required under the Ichthys LNG project development agreement. It is unclear why Santos’ gas is currently being used.

Environment Minister Kate Worden. Photo by PEMA TAMANG PAKHRIN

But major power blackouts in one of the richest gas provinces in the world was not lost on a respected industry figure who said the Territory was “scratching” for gas while the lucrative Beetaloo sub-basin and Barossa offshore reserve remain untapped.

“It’s remarkable the Territory is scratching around for every molecule of gas it can get its hands on to power homes and businesses, yet the Beetaloo and Barossa fields are still waiting for development,” he said.

Joel Riddle, chief executive of Tamboran Resources which is looking to produce Beetaloo gas, said the Top End blackouts highlighted the need for domestic energy production.

“The recent blackouts vividly demonstrate the need for all markets in Australia to secure their own energy supply,” Mr Riddle said.

“Tamboran is working hard to accelerate more gas out of the ground to first benefit Territorians. Tamboran aims to ensure the Territory gas market is well-supplied with gas before any other customer.”

In trying to calm business owners and householders that there is enough fuel to keep the lights on, Ms Worden pointed to the absurdity of the energy dilemma.

“There are contingency plans that do include diesel,” she said.

“We have enough diesel supply, you have to make sure you have a tiered approach to these issues so if we didn’t have a gas supply that we did have enough diesel to make sure we can generate enough electricity for the Northern Territory.”

Coal is the world’s dirtiest energy source, with diesel only marginally cleaner.

Santos’ Barossa gas project has been delayed by more than a year after Tiwi Island TOs blocked the development in the courts on cultural and consultation grounds and successive NT governments placed moratoriums on development at Beetaloo pending inquiries, which delayed the project by up to four years.

Ms Lawler has no plans for more moratoriums and is an advocate of gas.

“I have made my position on natural gas clear to Territorians – I want it to be sourced here,” she said.

“It will keep our lights on, keep power prices affordable, create jobs, be a transition fuel to renewables, and grow our economy to invest in things that matter, like education, health and housing.

“We are in an incredible position in the Territory, we have onshore and offshore natural gas resources that are the envy of the nation and our neighbours.”