Empire building: Project on track with production timetable

Work is accellerating at Empire Energy’s Beetaloo project, with production hoped to commence within three years.

GLOBAL gas producer Empire Energy has opened its Carpentaria 2 field on the east of the Beetaloo Basin to a site inspection by company board members, investors, regulators, media and a key political supporter of the project.

About 20 delegates were flown last week to the McArthur River Airport and bussed to the Carpentaria 2 site another 150km further west.

The tour began with a debrief by site operations staff about how fracking at the Carpentaria 2 field is progressing following the successful exploration last year at Carpentaria 1.

The party was taken on a tour of the various aspects to the operation including the sand-blending machines, water storage, the control centre and the well-head.

With a number of energy companies including Santos and Origin Energy looking to develop projects at the Beetaloo, Empire has emerged as favourite to begin production first when and if regulatory and political approvals are finalised.

Empire has spent $46.5m so far preparing sites in the Territory and is expecting to spend the same amount again this year as it prepares to move from appraisal to the gas production phase.

With Greens members one-vote from holding balance of power in the Senate and with a potentially key role in determining the future of fracking in Australia, Empire is keen to share potential benefits of the project.

The company has paid $3.4m in taxes to the Territory government as well as royalties to Traditional Owners, $100,000 in an arts partnership with emerging Borroloola-based Aboriginal artists and up to 1800 employment hours for Indigenous employees.

Up to 10 Territory businesses are benefiting from the project so far including Alice Springs-based Silver City Drilling, Borroloola-based Cairns Industries, the Heartbreak Hotel on Carpentaria Highway and El Nino Irrigation.

Deputy chief minister Nicole Manison said after the site tour that Empire has adhered to the approvals granted by government in line with recommendations from the Pepper Report, commissioned by the Labor government in 2016 to deliver regulatory and environmental certainty around on-shore gas development in the Territory.

“What’s exciting about this is they’re very well advanced. There is no doubt Empire is leading the charge when it comes to producing first gas and getting to that point of production,” Ms Manison said.

“There’s been a huge amount done by the other gas companies around the Beetaloo but when you have a look at the pace Empire’s going, all doing it within the rules, conditions and regulations but you can see it is advancing very well.

“They are doing a good job and their confidence is justified about getting to the point of production and probably being the first serious gas producer in the Beetaloo coming online.”

Ms Manison said recommendations from the Pepper inquiry will be legislated by the end of the year, opening up the field to gas production.

“(The moratorium) was an important process because it was about putting the scientific facts on the table, being able to consult properly with the Territory community and making sure people had confidence in the science.”

Empire Energy chief executive Alex Underwood said after more than a decade in Beetaloo, the company knows a priority is environmental sustainability and, as the only Beetaloo prospect on Aboriginal land, the continued support of Aboriginal people.

“We’ve done that for over a decade and are committed to continuing to do so,” Mr Underwood said.

“The Beetaloo can play a key role in underpinning gas supply to Australia’s east coast, and supporting the NT’s five-point plan to make the Territory a world-class gas production, manufacturing and services hub.

“Depending on results of activity currently underway, we hope first production will be achieved in 2024/25.”