THE FEDERAL government has announced a new A$217 million package to upgrade roads to make the Beetaloo Sub-basin more accessible for the oil and gas industry.

On Thursday, deputy prime minister Mick McCormack and minister for resources Keith Pitt unveiled the government's Northern Territory Gas Industry Roads Upgrades program. 

The program allocates $217 million of taxpayer funds to upgrade a corridor of roads including the Gorrie Dry Creek Road, Buchanan Highway, Western Creek Road, and other key paths to the Beetaloo region. 

The government said the infrastructure would create crucial supply chains to attract gas development. 

"The Basin has the potential to transform the Northern Territory's economy. The government's investment in roads and other supporting infrastructure will help unlock these benefits as well as supporting job opportunities for locals," Pitt said.

"These road upgrades will provide quality infrastructure to support gas development and other industries in and around the Beetaloo Sub-basin."

According to Pitt, the roads will create more reliable freight links and reduce private sector investment in road building to gas fields.

The roads will be sealed, strengthened, widened, and realigned. They will also be upgraded to resist flooding. 

The $217 million tops up an earlier commitment of $219 million from the federal budget for roads in the Territory. 

Towards the end of last year the government separately committed $50 million to help underwrite exploration work in the Beetaloo. 

Up to $7.5 million will be made available for each exploration well drilled. Companies can apply for a total of $22.5 million. 

ASX-listed Empire Energy, which recently drilled its Carpentaria-1 exploration well and hit liquids-rich gas, said the program would be a game changer for its short-term plans. 

"Access to this program will allow Empire to expand its 2021 program," Empire Energy CEO Alex Underwood said. 

Source: Energy News Bulletin

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