Cost of Tamboran gas deal to remain secret despite pre-election promise

Despite the CLP’s promise to release details of major gas deal ‘if it could’, the cost to Territorians will remain a secret. One group estimates it could be as much as $3.6bn.

The Northern Territory government has confirmed it will not release details of a major gas supply deal despite a pre-election promise to reveal the costings “if it could”.

One environmental research group estimated the likely cost of the agreement with Tamboran Resources to be as much as $3.6bn.

Earlier this year the government inked a nine year deal with the US company to supply Territorians 40 terajoules of gas a day from the Beetaloo – contingent on its fracking project reaching final investment decision.

Few details of the agreement were made public and Energy Minister Gerard Maley on Friday confirmed that would not change.

“The deal made by the previous Labor government and Tamboran in April 2024 is commercial in confidence,” he said.

“Developing our onshore gas industry in the Beetaloo Basin is an important part of rebuilding the Northern Territory economy.”

Energy Minister Gerard Maley said the Tamboran deal was commercial in confidence. Picture: Pema Tamang Pakhrin

A report by Springmount Advisory estimated the cost to taxpayers to be $1.8bn over nine years.

Its research was based on a recent federal government report estimating the cost of Blacktip gas production to be more than $14/GJ.

The report calculated a low scenario for Beetaloo gas of $10.5/GJ, based on cost modelling by Tamboran last year; a likely scenario based on the Blacktip cost; and a high scenario of $16/GJ.

The estimated costings ranged from $1.4bn to $2.1bn – and more if a possible 6.5 year deal extension is taken.

Springmount Advisory managing director Tom Quinn. Picture: supplied

Report author Tom Quinn said the deal missed an “enormous opportunity to invest in large-scale solar and big batteries”.

“The Territory is already the worst performing state or territory in the country when it comes to renewables in the grid. This deal with Tamboran all but guarantees that won’t change,” he said.

Frack Free NT said: “These excuses and secret deals are not good enough, and don’t pass the pub test”.

“We know that the cheapest form of energy is solar, so the only real winners from this deal are a Texan fracking company Tamboran and their overseas shareholders,” spokesman Peter Callender said.

The Blacktip gas field has supplied most of the Territory’s gas needs since 2009 – a 25-year deal with Italian company ENI that was also commercial in confidence.

ENI has failed to meet NT demand in recent years, however, as Blacktip gas field depleted faster than expected.

The shortages likely increased power prices, forcing the government to spend millions on emergency gas supply and to rely on diesel to shore up the grid as it struggled to connect large-scale solar farms sitting idle.