While unique and special, with huge volumes of as-yet untapped gas resources, the Northern Territory (NT) cannot be relied upon to prop up Australia's east coast market by being roped into the government's proposed gas reservation scheme.
That's according to Stephanie Berlin, the CEO of the Energy club NT, speaking today at an industry lunch in Darwin.
"A 20% reservation policy applied nationally is great on paper, but the reality is that Northern Territory is quite unique.
Stephanie Berlin | Credits: ENB
"I know we've banged on about how special and unique we are, but energy markets rely geographically on infrastructure, and essentially the NT just doesn't have the infrastructure to send gas to the east coast," she said, before suggesting the federal government could consider increased investment to provide the necessary infrastructure.
Also speaking in the Territory, Beetaloo Energy's MD Alex Underwood agreed.
Alex Underwood | Credits: ENB
"If you try to force 20% of territory production to go east, there simply isn't enough pipeline capacity in place anyway.
"We've been calling for some time for the federal government to seriously consider investing in that pipeline infrastructure to accelerate the production of those pipelines to Australia's east coast."
Berline's and Underwood's comments come as the NT government and gas industry has sent a defiant message to Canberra that the gas reservation scheme is a non-starter for the Territory unless it can support a major pipeline to transport gas from the vast Beetaloo Basin to the east coast.
Today the NT's Chief Minister Lia Finocchiaro was expected to announce the government will move management of the Beetaloo to the Department of Chief Minister and Cabinet, a sign of its importance to the Territory.
However, while a pipe is definitely needed in the minds of the Territorians' leaders, the imminent opening up of the Beetaloo could change the dynamics of the whole issue.
"The reality is, with the Beetaloo sub-basin coming online and the quantum of gas that is in that basin, it really becomes irrelevant," said the Territory's trade, business and Asian relations minister Robyn Cahill.
Robyn Cahill. | Credits: ENB
"We could not use all the gas in this basin if we tried within the next 200 years…We are saying to the Australian government: we have the solution for Australia's energy security well into the future," she while on a visit to Tamboran Resource's Shenandoah South gas site.
"What we really need is a commitment to infrastructure, pipelines – we need to get that gas to the east coast, we need investors to come here."
NT planning minister Josh Burgoyne agreed, adding: "The resources we have here in the Northern Territory can power this country into the future.
Joshua Burgoyne | Credits: CLP
"But we can't do it without a pipeline. It's one thing to bring in a policy; we need a pipeline."
Source: Energy News Bulletin