Great fracking day: territory inks mega gas deal

Northern Territory residents will share in cheaper power bills and more jobs, the territory's government says after inking a deal to buy gas fracked from the Beetaloo basin.

Fossil fuel company Tamboran will pipe gas to Territory power generators as part of the nine-year arrangement, with the potential for a further extension of six years.

Chief Minister Eva Lawler said it was "a great day" for the NT, as it would ensure affordable energy for residents and businesses and boost the economy.

"We're backing the industries that get the Territory working," she said.

"That's why my government is supporting the onshore gas industry."

Tamboran is expected to make a final investment decision on the 40 terajoule per day project by the middle of this year. First gas is expected in the controversial LNG project in the first half of 2026, assuming it clears all regulatory hurdles.

"This is a transformational development for Tamboran and our partners, after 10 years of hard work and more than $500 million invested in Beetaloo exploration and appraisal activities," chief executive Joel Riddle said in a statement to the stock market.

#ASXNews#TBN signs binding GSA with NT Government to supply 40 TJ per day for ~15 yrs from the proposed Shenandoah South Pilot Project, starting in H1 2026.

The Buyer has an option to extend the GSA for a further 6.5 years through to 2042.https://t.co/PGBezzjDlS#Gas #ASX pic.twitter.com/gL7Pa4AVdI

— Tamboran Resources (@Tamboran_TBN) April 23, 2024

Fracking, or hydraulic fracturing, is a drilling process used to extract gas from deep below ground by injecting water, chemicals and sand into the earth, causing fractures in the bedrock and allowing the fossil fuel to be extracted.

The technique is highly controversial among opponents who say it contaminates the water supply and damages the health of communities who rely on it.

The Environment Centre NT was "outraged" by the deal and said it calls into question the independence of the approvals process, given the project has not yet been given the green light by regulators.

"This is a disgraceful and risky deal that amounts to the NT government propping up the business case for a carbon bomb that will set the NT on a path towards climate collapse," the centre's executive director Kirsty Howey said.

The Nurrdalinji Native Title Aboriginal Corporation said the Territory government had jumped the gun and hadn't looked closely at the risks of fracking to their water, country and sacred sites.

"Traditional owners are fed up with the big lies told about the jobs and economic benefits of gas," said Nurrdalinji chair Samuel Sandy.

"Tamboran should pack its bags and go home."

Tamboran has defended the safety of the project and points to the economic benefit the NT government and traditional owners will receive from royalties.

Developing the Beetaloo Basin and boosting onshore gas will create thousands of work opportunities for Territorians and boost the economy by $17 billion, the NT government says.