Middle Arm business case gets green infrastructure tick

The NT government’s Middle Arm project received a significant infrastructure tick – and a warning – on Monday. Read what was said.

The NT government is celebrating a significant project milestone with Infrastructure Australia signing-off on the Middle Arm sustainable development precinct’s second-stage business case.

Infrastructure Australia’s website was amended on Monday to reflect the project’s elevation to stage two of the three-stage business case evaluation process.

If developed, it’s estimated the Middle Arm precinct could create up to 20,000 jobs across the Territory.

Infrastructure Australia put the project’s opportunity time frame at between zero and five years but warned significant additional work was required to develop Middle Arm.

Middle Arm by air in October last year. Picture: Wayne Zerbe

Monday’s announcement was significant for the NT government which said developing the sustainable development precinct would go a long way towards its $40bn economy by 2030.

In 2019 the Australian Infrastructure Audit identified additional infrastructure could help “catalyse” growth across Northern Australia and unlock development across a range of industries.

“The Middle Arm precinct will also support the opportunity to transition Australia’s exports to high-tech, low-cost, low-emission energy sources, as recommended by the 2021 Australian Infrastructure Plan,” the updated IA business case report said.

“Proportionate and timely investment in supporting infrastructure could uplift the value of exports from Northern Australia to neighbouring and growing Asian regions,” it said.

Tamboran gas rig at the Beetaloo Basin.

Middle Arm was picked from a range of site options because of its access to land and sea, its size and its proximity to existing social and economic infrastructure.

Common user infrastructure includes transport, utilities, port infrastructure and accommodation.

Five proponents have been short-listed for consideration for project development at Middle Arm.

The preferred program packages aim to activate a sustainable development precinct that increases NT output, employment and value-added industries.

They will also contribute to a carbon neutral economy and involve capital costs and construction risk commensurate with the level of government involvement required to unlock private investment.

The report acknowledges the planning done by the NT government to ensure the precinct’s success but warned ensuring government investment was aligned with potential business investment as being key to mitigating the risk that demand does not materialise.

It said the NT government’s stage three business case should focus on precinct design, delivery planning including staging of individual projects, procurement, commercial structure and governance.

Middle Arm by air. Picture: Wayne Zerbe

“Regulatory initiatives have been noted as critical and will be part of the stage three assessment, such as precinct approval processes,” IA’s report said.

“The scale and complexity of the proposal will require careful management of environmental risks to surrounding coastal, marine and benthic ecosystems and extensive stakeholder engagement.”

Chief Minister Natasha Fyles said Middle Arm was critical to the government’s zero-emissions target.

“Our future will be built on cleaner energy that puts Territorians first,” she said.

“Middle Arm is crucial in the growth of our low-emissions and renewable energy sector as we power towards a net-zero future.

Treasurer Eva Lawler, Chief Minister Natasha Fyles and Deputy Chief Minister Nicole Manison in parliament. Picture: Pema Tamang Pakhrin

“It is not a secret that sustainability is at the core of Middle Arm, with sustainable energy, sustainable jobs, and a sustainable environmental strategy all part of the plan to build a strong future for the Territory.”

Treasurer Eva Lawler said the IA announcement had broader national implications.

“The Middle Arm precinct will greatly benefit Territorians long into the future,” she said.

“We are creating new sources of renewable and low-emission energy, unlocking new opportunities and focusing on a cleaner, greener future.

“Due to its strategic position and extensive planning, the Middle Arm precinct will enable several industries, land and marine, which will add great value to our goal of reaching a $40bn economy.”

In June, the NT government announced five proponents would have 12-months to prepare a business case to develop long-term operations at Middle Arm.

They are French renewable energy operator Total Eren, natural gas company Tamboran, resources start-up Tivan, Fortescue Future Industries and critical minerals company Avenira.