NT energy sector responds to new water trigger laws

New water trigger laws will “not impede” key Territory gas project, says one chief executive. Read more for the energy sector’s reaction.

The energy sector has taken aim at the Federal Government after greater ‘water trigger’ laws were introduced last week.

The laws, updated under the Environment Protection and Biodiversity Conservation Act, ensure unconventional gas projects will be assessed for their impact on water resources.

Lingiari MP Marion Scrymgour welcomed the amendment.

“Water is sacred – there is nothing more important to people and communities than proper protection and regulation of our precious environment and water,” she said.

“I made a commitment to the people of the Northern Territory at the last federal election that an Albanese Labor Government would pass new laws protecting our water and I’m very proud to have delivered that.”

Ms Scrymgour said an improved economy should not be at the expense of the environment.

“The amendments to the EPBC Act mean unconventional gas projects, such as fracking to extract shale gas, will not be approved unless proponents can demonstrate the sustainability of water usage,” she said.

“I am a big supporter of job creation and new industries, but not if they put at risk our water supply and our environment because that’s what sustains us.”

Marion Scrymgour said she was “very proud” to deliver the new water trigger laws. Picture: Pema Tamang Pakhrin

Chief executive of Tamboran Resources Joel Riddle told NT News the legislation would “not impede” activities in the Beetaloo Basin, but said it was “regrettable” consultation did not occur earlier.

“Tamboran treats water as our most precious resource, and is moving forward with a world-class drilling campaign that is already heavily regulated by the NT government and the new legislation does not impede our activities in the Beetaloo Basin,” he said.

“The federal water trigger that’s been passed only duplicates existing Territory approvals and therefore does not impact the timing of Tamboran’s planned operations.

“Tamboran remains focused on providing energy relief to Australian households by accelerating new gas supply from the Beetaloo Basin and is currently on schedule.”

Mr Riddle maintained there were other more “water-intensive” industries.

“As of 2023 the entire gas industry uses only 0.2 per cent of the Territory’s licensed water volumes which is a tiny fraction compared with more water-intensive industries,” he said.

“While Tamboran welcomes the Minister’s engagement with industry, it is regrettable that consultation did not begin until hours before the water trigger amendments were introduced.”

Chief executive of Tamboran Resources Joel Riddle said the water trigger would “not impede” Beetaloo Basin activities.

Australian Energy Producers chief executive Samantha McCulloch described the initiative as “unnecessary”.

“Australia’s oil and gas industry supports effective and efficient regulation, based on sound science and research,” Ms McCulloch said.

“We want to improve environmental outcomes and build business certainty, avoiding added costs and delays to project approvals at a time when bringing on new gas supply is so critical.

“The Australian Government’s rushed deal with the Greens to expand the water trigger creates unnecessary duplication and another barrier to unlocking new gas supply.”

Chief executive of Australian Energy Producers Samantha McCulloch said the Government had made a “rushed deal” with the Greens.

Ms McCulloch said the new laws would “damage” Australia’s reputation.

“The change is the latest in a long list of interventions in the gas industry that are damaging Australia’s reputation as a stable investment destination and risking future gas supply security,” she said.

“The water trigger duplicates existing state and territory water management systems while relying upon the same expert advice.

“The 2020 Samuel Review did not recommend the expansion of the water trigger, and an earlier 2017 review of the trigger found it costs industry $46.8 million per year with no evidence that the trigger has achieved its aims.”