NT government hits back at ‘east coast hypocrisy’ over Beetaloo Basin gas push

The battle over Northern Territory’s controversial Beetaloo Basin has intensified as the government defends plans to unlock vast gas reserves against fierce environmental opposition.

A pipeline built by APA Group will connect gas from the Beetaloo Basin to the Northern Territory grid.

The Northern Territory government has accused critics of the Beetaloo Basin gas project of hypocrisy, claiming opposition is being driven by eastern states that rely on fossil fuels while denying the Territory the same economic opportunities.

After years of protests, environmental assessments and shifting political winds, the Beetaloo – once dismissed as a Territory “pipe dream” – is edging toward production. Tamboran Resources, the basin’s most active operator, plans to begin supplying gas to the domestic market by mid-2027, replacing declining local fields that generate about 70 per cent of the NT’s electricity.

The company and its partners believe the basin could one day underpin both the Territory’s energy needs and broader east coast demand as legacy production wanes.

But with development now imminent, opposition remains entrenched, with critics citing environmental risks and impacts on Indigenous communities.

Unlocking the basin’s vast reserves will depend on hydraulic fracturing – or fracking – a process that remains one of the most divisive in Australian energy policy.

Industry argues it is safe and tightly regulated, while opponents warn it threatens groundwater and could release methane, a potent greenhouse gas.

In the Territory, where aquifers are essential for remote communities, those concerns have long carried political weight.

Proponents counter that fracking technology has advanced significantly and is supported by scientific reviews that found the risks manageable.

A land-use agreement has been reached with traditional owners for the first stage of the project, protecting sacred sites and offering economic benefits to local communities.

Environmental groups, however, say any industrial activity in the basin amounts to desecration that cannot be justified.

APA Group’s chief executive Adam Watson said the Beetaloo project could prove pivotal for the country’s energy security.

NT Treasurer Bill Yan said opposition to the project was being fuelled by “outsiders” – people in NSW and Victoria who, he argued, enjoy reliable energy and high living standards made possible by fossil fuels, while seeking to block the same development in the Territory.

“This agitation is coming from the eastern states. It’s not from people who live here, who are on the ground,” Mr Yan told The Australian.

“The Beetaloo is not just for the Territory but also for the Aboriginal people who are custodians of this land.

“They will see the wealth of this development – the jobs and the opportunities.

“That’s where the Territory has lacked for a very, very long time.”

The Territory’s commitment to gas is among the strongest in the country, reflecting its reliance on resource projects to drive growth in one of Australia’s most economically disadvantaged regions. Only 28 per cent of Indigenous Territorians are employed, according to the 2021 census, contributing to the nation’s widest gap in health and life expectancy.

For Darwin, the Beetaloo represents jobs, revenue and energy security – and, as an onshore resource, royalties will flow directly to the NT government, unlike offshore projects around the Top End.

Forecast east coast gas shortfalls later this decade have given fresh momentum to the project, even as environmental groups warn large-scale development will lock in fossil fuel emissions for decades and undermine national climate goals.

APA Group chief executive Adam Watson, whose company is building the pipeline linking Beetaloo gas to the national grid, said the project could prove pivotal for the country’s energy security.

“This is a game changer. It’s a silver bullet,” Mr Watson said. “It will provide security of supply to Darwin and the excess urgently required for the southern markets.”

In Canberra, the basin poses a dilemma.

The Albanese government’s safeguard mechanism is designed to cap emissions from large industrial projects even as it faces pressure to keep energy affordable. Industry groups warn that any move to block or delay the Beetaloo could fuel investor uncertainty over Australia’s energy policy.

“Most of this gas would be exported, but it’s driving dangerous global warming for all Australians,” said Market Forces gas campaigner Angelica Mantikas. “Pipelines that enable Beetaloo fracking undermine our climate commitments.”

Tamboran insists its operations will be among the lowest carbon-emitting of any onshore gas project, using electrified rigs and offsets to curb emissions.

But analysts caution that the economics remain challenging, with billions of dollars in infrastructure and long-term contracts still required before the Beetaloo can deliver on its promise.

Colin Packham visited the Northern Territory as a guest of APA Group

Originally published as NT government hits back at ‘east coast hypocrisy’ over Beetaloo Basin gas push