Empire Energy gas deal shores up NT electricity supplies

The Territory Government has inked another gas deal to shore up our electricity supply. Read who it’s with.

More Beetaloo Basin gas will soon be supplying local homes and businesses with the NT Government and Empire Energy inking a gas supply deal in Darwin Friday morning.

Empire Energy’s Alex Underwood, chief minister Eva Lawler and Mining Minister Mark Monaghan signed the deal at the Winnellie office of Territory Instruments, one of about 100 NT companies that have had work from the Beetaloo project.

The agreement will see gas from Empire’s Carpentaria Pilot Project flow into the Northern Territory from mid next year until 2035, with a five year option until 2040.

Empire’s Carpentaria field lies close to the Carpentaria Highway and the McArthur River Pipeline and is targeting production of 25 terajoules of gas per day, with an additional 10 terajoule option on top of that.

All smiles after signing the Empire Energy gas agreement

With the 40 terajoules already secured in a previous gas supply agreement with Tamboran Resources, the Territory is well on the way to securing the about 80 terajoules of gas required to meet average daily consumption requirements.

Empire Energy managing director Alex Underwood said the announcement would generate hundreds-of-millions of investment dollars into the NT economy.

“This agreement that we’ve signed with the government represents around 50 per cent of the demand for gas for electricity generation here in the Northern Territory and it demonstrates Empire’s commitment to supporting the NT’s energy sector and the job creation and support for local businesses that will flow,” Mr Underwood said.

“We expect this announcement will facilitate hundreds of millions of dollars of investment into the economy.

“Empire has invested around $150m into the NT economy over the past five years in particular, and we’re now moving from the exploration phase into the development phase and that will involve drilling additional wells and building a gas processing facility that will hook into the McArthur River pipeline.

“There’s going to be a big requirement for a range of support services around those activities, and Territory Instruments is just one of many examples that we foresee being able to benefit from this development.”

Mr Underwood said the company was finalising regulatory processes including securing Indigenous consent from traditional owners and final environmental approvals.

He said a connection from the field to the pipeline had been built and a processing facility would be after final investment decision, expected later this year.

There are currently four wells at Carpentaria, of which two will be used in initial production.

While the terms of the agreement with the government are confidential, Mr Underwood said shale gas deposits such as Beetaloo were relatively inexpensive.

“If you look at shale gas development in the United States, they have the cheapest gas in the world and it’s because highly prolific shale basins such as the Beetaloo can be so productive,” he said.

“Bringing more supply into the market from this incredible basin will put significant downward pressure on prices going forward and ultimately, that will be good for consumers.”

Ms Lawler said the agreement would deliver economic benefits.

“This gas deal with Empire is another example of my team backing the industries that get the Territory working,” she said.

“These gas agreements will contribute to a broad gas portfolio that diversifies and secures supply while also supporting the development of the Beetaloo.”

She said the government was in talks with Central Petroleum for additional gas supplies.

Opposition Leader Lia Finocchiaro said Territorians couldn’t trust Labor to deliver gas and the party was divided over gas.

“Four weeks out from an election Labor wants Territorians to believe they are pro-gas,” she said.

“This is a government that is tired and divided and Territorians know that under Labor gas certainly is unsure.

“Labor still hasn’t revealed the cost to Territorians on these gas deals.”

She said only the CLP had a plan to deliver better approval timeframes for industry that would power the Territory into the future.