Beetaloo gas reserves beyond domestic energy needs, new report finds

The Beetaloo has enough domestic gas for 237 years and the overwhelming majority will go offshore, a new report has found as environmentalists sharpen opposition to the development.

The amount of gas in the Beetaloo basin is well beyond what the domestic market could reasonably need according to climate activists, who want to defeat its development should the reserve become a hallmark project of a privatised Santos.

Abu Dhabi’s national oil company is in exclusive due diligence to buy Santos for $30bn.

Market Forces said the basin holds enough gas to meet Australia’s current domestic demand for 237 years, a claim aimed at weakening public support for fracking in the Beetaloo.

The activist group argues this undermines messaging by companies such as pipeline giant APA Group that the project is needed to alleviate the east coast gas shortfall.

The future of the Beetaloo Basin — one of Australia’s largest untapped gas resources — has emerged as a flashpoint in the energy transition.

While the Northern Territory government granted approval for fracking in 2023, given the potential for jobs and billions in royalty revenue, the development has faced stiff opposition from environmentalists and some Indigenous groups who cite cultural and climate concerns.

Market Forces chief executive Will van de Pol said the thinking around Beetaloo being essential is a redundant concept.

“Over the past 10 years, despite east coast Australia more than doubling gas production, wholesale gas prices have more than quadrupled.

“APA must stop gaslighting investors and Australian consumers, and drop its costly plans to unleash dangerous fracking in the Northern Territory.”

The report comes at a pivotal time, as Abu Dhabi’s ADNOC circles Santos — one of the stakeholders in Beetaloo gas exploration. Activists fear that foreign ownership could accelerate the commercialisation of the basin for export, especially to high-demand Asian markets.

Santos earlier this year inked a deal with ASX-listed junior Tamboran Resources to explore the potential expansion of the Darwin LNG facility. The proposed second train — which already has planning approval — could add up to 6 million tonnes of annual capacity and would be underpinned by gas from an exploration permit 75 per cent owned by Santos and 25 per cent by Tamboran.

The prospective development adds further weight to speculation over the strategic value of Santos’ Beetaloo and NT assets. ADNOC has indicated it would bankroll a major ramp-up in production if successful in its bid for Santos, assuming it clears foreign investment hurdles.

It is informally recommended by the board.

Santos, in contrast, has pledged to dial down capital expenditure once its current suite of growth projects — including the $5.7 billion Barossa LNG development and an oil venture in Alaska — are completed.

While liquefied natural gas exports are widely seen as the most commercially viable pathway for Beetaloo gas, given the basin’s remote location and infrastructure challenges, APA and others maintain the region could solve the east coast supply crisis by the early 2030s, provided key logistical barriers are addressed. APA is pursuing development of a 580-kilometre pipeline to link the Beetaloo to the Amadeus pipeline network, a project yet to receive a final investment decision.

However, the increasing scrutiny from activist investors and environmental groups risks complicating those plans.

Market Forces — a shareholder advocacy group that has successfully pressured financial institutions to abandon coal and gas ventures — is aiming to capitalise on the probability the majority of Beetaloo gas gets allocated for overseas users.

Still, the gas industry argues that export and domestic supply ambitions are not mutually exclusive. Industry groups point to forecasts showing the east coast is on track to face a shortfall in gas supply from 2029, a scenario they say demands urgent action.

They maintain that developments such as the Beetaloo are capable of shoring up Australia’s long-term energy security if properly integrated into national infrastructure.

Originally published as Beetaloo gas reserves beyond domestic energy needs, new report finds