By ERWIN CHLANDA
Take out the hype and Beetaloo gas is a pretty thin project.
The sub-basin, 900 km north of Alice Springs, is “estimated” to contain 500 trillion cubic feet of gas.
The NT Government refers to this estimate as being “by industry”.
Studies and “industry analysis” projecting that development “could” produce 13,000+ jobs by 2040; increase economic activity by $17+ billion … and so on.
While not prepared to put their names to these claims, NT governments – the current CLP one and its Labor predecessor – are touting that Beetaloo “could propel advanced manufacturing, domestic supply security and cleaner energy production in Australia, while accelerating multibillion dollar growth in the Territory economy.
“Resource estimations (by industry not the government, remember) are equivalent to more than 1,000 times the current annual domestic consumption in Australia, or the amount of energy required to drive a car 483 million kilometres.”
An expert in highly-placed public and NGO positions, speaking to the Alice Springs News on the condition of not being named, says there is not a great deal we can be sure about at this stage.
At the moment there are just four or five drills and they are “looking promising”. However, full exploration of what’s in the basin of 28,000 square kilometres is a long way off.
No production licensing is in place, so there is no production and hence no royalties are flowing to the NT Government.
Very little is going to happen in the next five years and the downstream infrastructure is up to 10 years away, says our source.
The upside is the field’s development is a Federal infrastructure project and not much cash is from the NT.
The Territory is putting in a dollar for dollar subsidy for drilling via the NT Geological Survey.
Our source says WA’s policy of retaining the equivalent of 15% of gas exported for WA consumers is a chicken and egg issue in the NT.
The current market is too small. The main Territory use of gas is for “keeping the lights on in Darwin”.
But if the objective is in fact “accelerating multibillion dollar growth” then cheap gas could attract the necessary manufacturing industry.
The role of Beetaloo in the Territory’s quest towards renewable energy is a puzzle.
In the current global debate gas is seen as a transitional solution, until dirty coal is phased out and solar takes over.
Gas is less dirty than coal but it still is non-renewable, which means the faster we get to solar the better for the world.
That’s not the way Nicole Manison seems to see it. She was the darling of the 300 miners gathering for the Annual Geoscience Exploration Seminar (AGES) in Alice Springs.
The Alice Springs News asked her at the 2023 AGES for how long Beetaloo will be supplying gas.
She replied: “Beetaloo will continue to operate for as long as it is commercially viable. [The companies] work towards making sure they are viable and profitable. While demand is there they will continue to operate.”
No mention here of accelerating solar development so Beetaloo can be shut down sooner.
Ms Manison was the NT Mines Minister from the 2020 election.
In April 2024, she signed a gas supply agreement with US firm Tamboran Resources, without a competitive tender process, and without divulging the costs.
Less than three months later, she accepted a job with Tamboran as vice-president of government relations and public affairs.
Another likely interest group to get Beetaloo flowing until it’s dry are those Traditional Owners who support the development (some are fiercely opposed). They stand to obtain payments, hundreds of millions of dollars, for their consent to produce gas from their land.
When gas production stops, so do the payments. TOs don’t own the sun.
PHOTO from the 2021 AGES conference (from left): Minister Manison, Chief Minister Michael Gunner, Alice Springs airport stall staff including CEO Dave Batic and Ian Scrimgeour, Executive Director, NT Geological Survey.
UPDATE January 8
A Northern Land Council spokesperson said: “Traditional Owners are able to benefit from a range of social, commercial, and economic development agreements including solar farming, mining, agricultural, and pastoral projects on their land. This includes a number of projects within the Beetaloo Basin.
“These land use agreements can also include employment and training opportunities.
“The Northern Land Council has facilitated a number of solar projects on Aboriginal land across its region; and will continue to follow the directives of Traditional Owners towards progressing further opportunities.”