Industry News

Dramatic new details have been released on the future of Sun Cable, the world’s biggest renewable energy and storage project, with 12 gigawatts (GW) of wind capacity to be added to the massive arrays of solar panels and giant batteries planned for the Northern Territory.

The new details were unveiled this week by Quinbrook Infrastructure Partners, the Australian-founded global investor that was brought in by Sun Cable’s principal backer, software billionaire Mike Cannon-Brookes, to look at the near term domestic opportunities for the project.

Quinbrook quickly identified that wind energy would be a useful addition to the project that was originally focused on 20 GW of solar and 42 GWh of battery storage.

After nearly a year of studies, Quinbrook now has a better idea of what that might look like – 12 GW of wind, with the solar component reduced from 20 GW to 12 GW, and the storage component also reduced to 32 GWh – thanks in part to the role that wind will play in providing power after the sun goes down.

The project, according to James Allan, a director of both Quinbrook and Sun Cable, will likely be rolled out in two stages – with the first sized at 12 GW of wind and solar and 16 GWh of battery storage.

Interestingly, the first stage will now target both a link to Singapore and the planned supply to a new massive green manufacturing hub at Middle Arm in Darwin, rather than just the domestic component that had been touted last year.

The second stage, of another 12 GW of wind and solar, and another 16 GWh of battery storage, will be focused on expanding the capacity of the link to Singapore.

“It’s a very large and ambitious project,” Allan told the Energy Storage conference in Sydney this week. “In some sense. it’s the largest behind the meter project in the world, because what we’re what we’re actually going to be doing is running our own cable into the (Middle Arm precinct).”

That means it will be separate to the existing Darwin grid, which is tiny in comparison with a maximum load of around 300 MW. “We’re going to be running six gigawatts into Darwin’s area, and about four gigawatts of that will go into the Middle Arm precinct to support new green industries,” Allan said.

“About two gigawatts of that power will be delivered into the international cable and follow through to Singapore to support Singapore decarbonising its grid.

“And so Quinbrook at the moment is focused on what’s called the downlink side of the project, which is the domestic generation fields, the 800 kms HVDC domestic link from those generation fields up to Darwin and the connections into Middle Arm and the export terminal.

Sun Cable project map released last September

“The second stage of the project called Singapore Link is then focused on the much longer subsea cable, the 4,300 Kkm cable that will run through Indonesian waters to the offtake facility in Singapore they need to connect into the Singaporean grid.

“And so it’s a massive project. I think what the reason that we were attracted to it and why we see this as a really interesting, exciting project to be involved in is the ability to not just send power to Singapore, but also to use it domestically to do exactly this thematic investing that I’ve been talking about in this presentation.

“We want to see some of these industries springing up in Darwin.”

Allan also flagged that Quinbrook itself – which is looking at an $8 billion polysilicon production project to help Australia grab a bigger share of the solar supply chain – would likely be a customer for its own planned projects “and hopefully do something useful with it and export it to Asian markets and elsewhere.”

Allan said Sun Cable would be able to support multiple projects of that nature and help Darwin achieve its goal of creating $40 billion green economy.

“Australia is blessed to have … all the ingredients that are needed to make this happen,” Allen said. “We have to renewables, we have the minerals, we have the ports, we just need to push and assume our place in these growing and new markets that are springing up.

“But time is of the essence. There are a number of other countries that have exactly the same idea and whilst these ports are scarce, they’re not completely unique.

“And so many other countries are trying to fold in under the wing of US policy support, to get special status to be able to contribute to push their ports push their renewable industries as hard as they possibly can. And we need to be in the mix right now.”

Source: Renew Economy: Clean Energy News and Analysis

Since 2018, the Utilities Commission of the Northern Territory (Commission) has published an annual Northern Territory Power System Performance Review (NTPSPR), which focuses on overall power system, generation and network performance in the Darwin-Katherine, Alice Springs and Tennant Creek power systems. Where possible and relevant, the NTPSPR compares current performance with historical data to identify trends and industry benchmarks to provide context to the results.

The NTPSPR’s main purpose is to inform the responsible minister, government, electricity licensees and stakeholders on the performance of the Darwin-Katherine, Alice Springs and Tennant Creek power systems, and provide an assessment of generation and network performance in 2022-23, including by highlighting any areas of concern.

Regular reporting on the electricity supply industry helps increase understanding and transparency of issues, with a view to improving planning and investment decisions, understanding of value for money (price compared with level of service) and general performance by holding electricity licensees accountable for their decisions and performance, and the subsequent impacts on customers.

The 2022-23 NTPSPR is prepared by the Commission in accordance with section 45 of the Electricity Reform Act 2000 and is restricted to the Darwin-Katherine, Alice Springs and Tennant Creek power systems, with the Darwin-Katherine power system further segmented into the regions of Darwin and Katherine for some indicators. The 2022‑23 NTPSPR has been prepared with input from licensees through stakeholder consultation.

The 2022-23 NTPSPR continues to transition its ‘look and feel’ from that of earlier reviews, with the Commission revising the focus from a technical and broad-based review of overall power system, network and generation performance, to a review with a narrower scope and focus on standards of service and outcomes of licensee performance as experienced by customers. This change in focus realigned the NTPSPR with the Commission’s role as an economic regulator, noting the Commission is not a technical regulator. However, when and where necessary, the Commission will undertake a ‘deep dive’ on a particular issue or issues, including of a technical nature, either as part of this publication or another publication.

Find the results of this review here.

To find out more about the Utilities Commission of the Northern Territory.

The Adelaide River Off-Stream Water Storage (AROWS) project is continuing to take shape with an Airborne Electromagnetic (AEM) Survey taking place to help streamline infrastructure design investigations for AROWS.

AROWS is a sustainable approach to water security. Unlike traditional dams that block river flow, AROWS stores water away from the river in an off-stream storage by utilising a naturally occurring basin made up of a ridge formation north of Lake Bennett.

The AEM survey is a non-invasive form of survey that will be conducted by a helicopter carrying a sensor minimum of 30 metres above the ground to measure the natural variations in the electrical properties of the soil, rocks and water.

The information collected in the AEM survey will help streamline future ground investigations, increase certainty of geological and geotechnical models, reduce design and construction risks and provide a thorough understanding of the land within and surrounding the AROWS site.

AEM data will be collected by transmitting an electromagnetic signal over the AROWS site and surrounding areas from a sensor attached to a helicopter.

AROWS is part of the Darwin Region Water Supply Program, which also includes Manton Dam Return to Service; Stage 1 of the Program has attracted over $300 million in investment from the Australian Government.

AROWS will secure Greater Darwin’s drinking water supply over the long term, and will be a critical enabler for agricultural and industrial growth. Construction of AROWS (Stage 2 of the Darwin Regional Water Supply Program) will provide long term water supply for the proposed Lambells Lagoon Agribusiness Precinct and the Middle Arm Sustainable Development Precinct.

Quote attributable to Chief Minister Eva Lawler:

“It is vital we secure sustainable solutions that protect our environment and maintain our great Territory lifestyle.

“This new surveying will feed into the infrastructure design work which has just kicked off, creating even more working opportunities for Territorians.”

Quotes attributable to Minister for the Environment, Climate Change and Water Security Kate Worden:

“Water is a very important resource for the Territory as we work to build our economy to $40 billion by 2030.

“The AROWS project will secure our drinking water supply over the long term and help develop our agribusiness industries and drive industrial growth."

Source: Northern Territory Government Newsroom

The Australian oil and gas industry is set to deliver a record $17.1 billion in taxation revenue to federal, state and territory governments for the 2023-24 financial year, according to a survey by Australian Energy Producers.

This represents a 5.3 per cent increase from the $16.3 billion paid in 2022-23.

The massive tax haul includes $12.8 billion in company income tax, $1.2 billion in Petroleum Resource Rent Tax (PRRT), $2.5 billion in state royalties and excise, and $656 million in other taxes.

Australian Energy Producers Chief Executive Samantha McCulloch said the $17 billion contribution is equivalent to funding 11 new public hospitals, and 250 schools, or covering healthcare costs for 1.76 million Australians.

“The latest survey results represent the highest revenue contribution to date, helping governments fund essential services and infrastructure like roads, schools and hospitals,” McCulloch stated.

In addition to the record tax payments, the survey showed the oil and gas industry will spend over $41 billion on Australian goods and services in 2023-24, supporting local jobs, businesses and communities across the country.

McCulloch reinforced the federal government’s Future Gas Strategy, which recognises the crucial role of gas in Australia’s energy security and economy.

“The strategy put beyond doubt that gas is essential to Australia’s energy transformation and investment in new gas supply is needed to ensure Australian households and businesses, and our trade partners, continue to have reliable and affordable energy,” she said.

The record tax and spending figures underscore the oil and gas industry’s critical importance to the Australian economy and its role in funding vital public services and infrastructure for all Australians.

Source: Petroleum Australia

• Northern Territory could offer the solution to eastern Australia’s gas woes
• Basins such as the Beetaloo, Amadeus and Bonaparte are seeing significant activity
• Bonaparte has proven gas fields both offshore and onshore

Much has been made about the expected gas supply crunch that Australia’s eastern states will face in the coming years and equally how new sources of supply are needed to address this.

The AEMO has forecast that the annual supply gap would increase in magnitude from 2028 as southern gas production declines.

This has led to calls for the relevant governments to open up new areas in existing basins, targeting untapped offshore basins, overturning laws preventing the use of fracture stimulation in certain states, and diverting gas meant for export towards domestic use.

Gas supporters are unlikely to find much support from the recently released budget with Treasurer Jim Chalmers saying there won’t be any new money for gas – outside of the already promised $566m over 10 years for GeoScience Australia to map Australia’s soil and seabed.

That said, the federal government’s new gas strategy provides hope that efforts will be made to streamline gas project approvals in order to ensure supply is maintained.

And the conversation about the gas supply shortage and its solutions isn’t just restricted to the eastern states.

The Northern Territory has also seen a fair amount of attention given its own supply woes and rich potential in areas such as the Beetaloo and Bonaparte basins.

Gas supply in the territory has been impacted by the downturn in supply from the offshore Blacktop field to the point that blackouts were experienced.

This same shortfall has led to the closure of the Northern Gas Pipeline (NGP) that transports gas out of the NT to the eastern states, impacting on manufacturing groups such as Incitec Pivot, which had to shut operations in Queensland due to the pipeline closure.

Untapped gas potential

While the NT is facing its own gas supply woes, it also has the potential to not only address its own issues but go a long way towards meeting the needs of the eastern states.

The territory is home to several very significant oil and gas basins, three of which have drawn significantly more attention.

The Beetaloo Basin (in blue). Pic: Department of Industry, Science, Energy and Resources

First up is the Beetaloo Sub-basin, which if its pundits are to be believed will solve all our gas supply woes if only the Federal and territory governments stepped up with regulatory approvals and some funding (pretty please) towards infrastructure or tax breaks for exploration.

At first glance, there’s plenty going for it.

The 28,000km2 sub-basin – part of the larger 180,000km2 McArthur Basin – about 500km southwest of Darwin has been estimated by the NT government to host some 500 trillion cubic feet of in-place gas resources just in the proven Velkerri B layer.

Existing infrastructure includes the Stuart, Barkly, Roper and Carpentaria Highways, the Adelaide-Darwin railway, regional airports and – perhaps most importantly – three existing gas pipelines with the Northern Gas Pipeline linking the Amadeus Gas Pipeline to the East Coast market.

While in-place resources are not considered to be an accurate measure of just how much gas (or oil) is actually present – as it is an estimate of how much gas might be present if the target reservoir was filled to the brim, it nonetheless provides a hint of its potential.

Even if just 10% of this amount is recoverable, 50Tcf of gas is equivalent to about 25 years’ worth of domestic gas demand.

That said while there is little doubt that the target shales in the Beetaloo are prospective for gas, shale formations typically have very low permeability meaning that you often need to drill horizontal sections that require fracture stimulation before you are able to get commercial gas flow rates. Read here for a little explanation into the process.

Despite this, companies operating in this region include major companies such as Santos (ASX:STO) though its focus seems to be elsewhere at the moment along with juniors such as Empire Energy (ASX:EEG) and Tamboran Resources (ASX:TBN) .

Tamboran has demonstrated the ability of the Velkerri B shale to produce gas with its Shenandoah South 1H well flowing 3.2 million cubic feet per day from a 501m stimulated length within the mid-Velkerri B.

The second basin of note is the mature Amadeus Basin that is the source of practically all of the NT’s onshore gas production, specifically from Central Petroleum (ASX:CTP) Mereenie, Palm Valley and Dingo fields.

During the March 2024 quarter, CTP’s sales volumes were down 13% to 1.03 petajoules of gas equivalent due to the closure of the NGP from mid-February though they have increased in April under a new supply agreement with the Power & Water Corporation.

Other companies operating in the Amadeus include Greenvale Energy (ASX:GRV), which holds a 75% interest in EP 145 from Mosman Oil and Gas.

EP 145 hosts an existing best estimate prospective resource of 440 billion cubic feet of natural gas, 26.4Bcf of helium and 26.4Bcf of hydrogen and is on trend with the producing Mereenie oil and gas field.

Preparations are underway for a seismic program that will be completed in August 2024 to guide targeting for drilling in 2025.

Bonaparte has proven potential

The remaining area that could address supply shortfalls in the NT and beyond is the Bonaparte Basin.

Already known as being one of the most successful basins for petroleum exploration and production both onshore and offshore Australia, the success rate at the Bonaparte Basin is extremely high, making it a significant source of liquids and gas to the domestic and export markets.

Notable examples of fields in this area include the shut-in Blacktip field and the Petrel, Tern and Frigate fields that have total undeveloped Contingent Resources of 2.7 trillion cubic feet of gas.

While most of the ~270,000km2 area is offshore, the Bonaparte also includes about 20,000km onshore Northern Territory.

While the onshore area was previously difficult to commercialise due to the lack of infrastructure, this has been addressed by the recent construction of a new highway through the area.

Advent’s RL1 licence. Pic: Advent Energy

This is music to the ears of BPH Energy (ASX:BPH), which holds a 36% interest in unlisted company Advent Energy, as said highway passes within 4.5km of Advent’s Weaber gas discoveries.

Advent holds 100% of RL1 in the onshore Bonaparte that has firm 2C (best estimate) contingent resources of 11.5 billion cubic feet for the Weaber gas field.

Weaber appraisal wells have already proven the ability to produce gas at potentially commercial flow rates.

It recently received a five-year extension to RL1, which BPH managing director David Breeze says places Advent in a position to commercialise the area.

This has the potential to feed the territory’s gas needs.

Nor is BPH the only junior looking to explore the riches of the Bonaparte Basin.

Vintage Energy (ASX:VEN) holds EP 126, which includes the cased and suspended Cullen-1 well that intersected oil and gas shows.

The 6716km2 permit has multiple play types that have the potential to host large volumes though half of the area has been declared a “Reserved Area” by the NT government.

Source: https://stockhead.com.au/

On 14 May 2024, the Australian federal government handed down the Federal Budget 2024-25 which delivered an investment of AUD 22.7 billion over the next decade to build a Future Made in Australia.

The Future Made in Australia plan seeks to maximize the economic and industrial benefits of the move to a net zero transition, and secure Australia’s place in a changing global economic and strategic landscape. The agenda is now taking steps to encourage significant private sector investment into priority industries that are viewed as necessary to ensure Australia’s future prosperity.

National Interest Framework

As part of the Future Made in Australia plan, the government will create a Future Made in Australia Act and establish a National Interest Framework to guide the identification of priority industries and prudent investments in the national interest.

Five industries are aligned with the National Interest Framework as follows:

• Renewable hydrogen;
• Critical minerals processing;
• Green metals;
• Low carbon liquid fuels; and
• Clean energy manufacturing, including battery and solar panel supply chains.

New production tax incentives

The budget announced targeted production incentives to scale up priority industries. This will align tax incentives to investments in the national interest, target "green premiums" that are not yet reflected in market prices, and enable investment in economic resilience and security, including by shoring up and diversifying supply chains.

• An AUD 6.7 billion Hydrogen Production Tax Incentive will provide an incentive of AUD 2 per kilogram of renewable hydrogen produced for up to 10 years per project, between 2027–28 and 2039–40 for projects that reach final investment decisions by 2030. This will operate alongside the expanded Hydrogen Headstart program, which supports the early movers investing in the industry’s development.
• An AUD 7 billion Critical Minerals Production Tax Incentive will provide a production incentive valued at 10% of relevant processing and refining costs for Australia’s 31 critical minerals. This incentive will also be applicable for up to 10 years per project, for production between 2027–28 and 2039–40 by projects that reach final investment decisions by 2030.

Both of these incentives will be subject to industry consulatation before their implementation. 

Key industry funding measures

The budget introduced significant industry funding measures to support the identified priority industries under the National Interest Framework which include:  

• AUD 1.7 billion Future Made in Australia Innovation Fund: Designed to drive innovation and commercialization of innovative technologies and facilities linked to priority sectors, including green metals, batteries, and low carbon fuels;
• AUD 1.5 billion ARENA funding: Supporting the commercialization of technologies that are critical to net zero over the next decade;
• AUD 1 billion Solar Sunshot Program: Intended to incentivize private investment in Australia's solar panel manufacturing capabilities;
• AUD 1.3 billion Hydrogen Headstart: Supporting early industry movers through an additional round of the Hydrogen Headstart program;
• AUD 523.2 million Battery Breakthrough Initiative: Aimed at promoting the development of battery manufacturing capabilities through targeted production incentives;
• AUD 1.2 billion Critical Minerals investment: Providing strategic investment in priority projects through the Critical Minerals Facility (AUD 655 million), Northern Australian Infrastructure Facility (AUD 400 million), and supporting the funding of pre‑feasibility studies for common user precincts; and
• AUD 165.7 million Defence Industry Development Grant program: Increasing the scale and competitiveness of the Australian defense industry.

Content provided by Deloitte Australia.

Liability limited by a scheme approved under Professional Standards Legislation.

Source: https://www.taxathand.com/article/34431/Australia/2024/Future-Made-in-Australia-key-incentives-and-funding-

Industry groups have largely welcomed the Labor government’s decision to invest in services including law and order, education and health in the 2024-25 budget.

The Territory’s resources sector said increased spending in the budget was on the back of past and projected revenues sourced front the Barossa and Beetaloo gas provinces.

Chief Minister and Treasurer Eva Lawler’s second budget contained record expenditure, created record debt and moved the economy close to the government’s self-imposed $15bn debt ceiling.

NT Minerals Council chief executive Cathryn Tilmouth said the budget reinforced the heavy reliance on the minerals industry to provide budget revenue.

She said with NT mines at Groote Eylandt and Gove expected to close around 2030, there is enormous needs to find alternative sources of own-sourced revenue.

“You’re looking at some mines closing by the end of the decade if the NT Government doesn’t secure investment in opening new mines before that, then the economy is vulnernable and exposed to those conditions,” she said.

“The Minerals Council welcomes the ongoing investment in exploration through

the $9.5m commitment to the NT Geological Services’ Resourcing the Territory program.”

Australian Energy Producers NT director David Slama said gas was crucial to the NT Government’s rollout to net-zero emissions by 2050.

“The Budget shows the Territory Government is focused on delivering practical solutions on the road to net zero and underscores the importance of gas in Australia’s energy transformation,” Mr Slama said.

“The Budget continues to help progress development of the extraordinary opportunity of the Beetaloo Basin and Middle Arm Sustainable Development Precinct, while reinforcing the economic importance of the Barossa project.”

“The oil and gas industry also supports the Resourcing the Territory exploration program, delivering investment in the NT and supporting new energy supply with all of its benefits.”

NT Chamber of Commerce chief executive Greg Ireland said Territorians will benefit from the spin-offs of investment in health, education and policing.

“If you look at this from a liveability retention perspective, this is setting the scene,” Mr Ireland said.

“We have to invest in those social issues and have to make our environment more conducive to business wanting to stay here and invest in the Territory.

Industry groups have largely welcomed the Labor government’s decision to invest in services including law and order, education and health in the 2024-25 budget.

The Territory’s resources sector said increased spending in the budget was on the back of past and projected revenues sourced front the Barossa and Beetaloo gas provinces.

Chief Minister and Treasurer Eva Lawler’s second budget contained record expenditure, created record debt and moved the economy close to the government’s self-imposed $15bn debt ceiling.

NT Minerals Council chief executive Cathryn Tilmouth said the budget reinforced the heavy reliance on the minerals industry to provide budget revenue.

She said with NT mines at Groote Eylandt and Gove expected to close around 2030, there is enormous needs to find alternative sources of own-sourced revenue.

“You’re looking at some mines closing by the end of the decade if the NT Government doesn’t secure investment in opening new mines before that, then the economy is vulnernable and exposed to those conditions,” she said.

“The Minerals Council welcomes the ongoing investment in exploration through

the $9.5m commitment to the NT Geological Services’ Resourcing the Territory program.”

Australian Energy Producers NT director David Slama said gas was crucial to the NT Government’s rollout to net-zero emissions by 2050.

“The Budget shows the Territory Government is focused on delivering practical solutions on the road to net zero and underscores the importance of gas in Australia’s energy transformation,” Mr Slama said.

“The Budget continues to help progress development of the extraordinary opportunity of the Beetaloo Basin and Middle Arm Sustainable Development Precinct, while reinforcing the economic importance of the Barossa project.”

“The oil and gas industry also supports the Resourcing the Territory exploration program, delivering investment in the NT and supporting new energy supply with all of its benefits.”

NT Chamber of Commerce chief executive Greg Ireland said Territorians will benefit from the spin-offs of investment in health, education and policing.

“If you look at this from a liveability retention perspective, this is setting the scene,” Mr Ireland said.

“We have to invest in those social issues and have to make our environment more conducive to business wanting to stay here and invest in the Territory.

“If the big projects are not forthcoming we’ve literally got all the chips on the table because with a $12bn debt in a few years time we are exposed if they don’t.”

Master Builders NT chief executive Ben Carter said housing would be an essential element in future economic growth.

“In addition to resources, defence investment is underpinning their budget vision for the next 10 years, which is a good thing and NT Master Builders encourages the Government to continue to support that,” Mr Carter said.

“The gaping hole in this budget is housing, and without a massive boost in private sector housing, it’s going to undermine the ability in the Territory to realise the benefits of defence and other investment.”

Lord Mayor Kon Vatskalis praised Ms Lawler for her support for gas.

“The good things the government has made the right decision supporting Barossa, supporting Beetaloo despite the opinions of some people, but I’m sorry, you can’t make an omelette without breaking eggs, and you can minimise the impacts on the environment by other means.”

Source: The NT News

Budget 2024 is focused on delivering on Chief Minister Eva Lawler’s common sense plan to lower crime and get more Territorians into work.

Improving community safety is front and centre of the Budget, with a record breaking $561 million police budget for 2024-25. The Lawler Labor Government is investing an extra $570 million over five years in Police. 

As part of the common sense plan to lower crime, the Lawler Labor Government will recruit an extra 200 police officers, upgrade infrastructure, employ 25 new emergency call-takers and CCTV operators and provide ongoing funding to the Territory Safety Division. 

Budget 2024 includes $1.2 billion in funding for public order and safety, and $723 million in social protection to build safer and more resilient communities.

Budget 2024 will deliver cost of living support to Territorians, with the Lawler Labor Government increasing the community service obligation (CSO) for utilities – including the uniform electricity tariff CSO – by $55.2 million to $164.2 million.

Power in the Territory is heavily subsidised through the CSO. This investment in continuing the CSO subsidy to keep power prices low means an average household is saving $1200 and an average small business saving $2200, when compared with not investing in the CSO.

Budget 2024 includes increasing the value of the prepaid cards for Territory Seniors from $500 to $550, $8.2 million to continue delivering Back to School vouchers – which were increased by $50 to $200 – and $5.7 million to continue delivering the Sport Voucher Scheme.

The Lawler Labor Government’s unprecedented investment into education will start to flow into classrooms from early 2025, with the education budget for government schools increasing by $100 million to a record $890 million. With non-government schools and other education services included, the funding figure is $1.34 billion.

There is also $109.2 million to support vocational education and training and ensure the skill requirements of the Territory economy are met through training, workforce growth and skilled migration initiatives.

Budget 2024 includes a commitment of more than $4.4 billion in infrastructure investment across the Territory.

Some of the infrastructure projects being delivered by the Lawler Labor Government include $4 billion for the joint Territory and Commonwealth investment in remote housing, $209 million for Central Arnhem Road upgrades, $189.3 million for upgrades to the Outback Way corridor, $80.1 million for Tanami Road upgrades, $52.7 million for the Northern Territory Art Gallery, $50.4 million for infrastructure upgrades to reposition Jabiru as a tourism and regional services hub,  $30.3 million to develop the Katherine Logistics and Agribusiness Hub, $17.2 million to enhance recreational fishing infrastructure and many more projects across the Territory.

The Territory economy is forecast to grow by 2.3% in 2024-25, supported by growth in public expenditure and a recovery in household consumption, as pressure on household budgets ease.

Public investment is expected to increase by 11.2% in 2024-25, following strong growth in previous years.

Public investment is forecast to average $2.3 billion per annum from 2023-24 to 2027-28 and provide significant support to the Territory economy and jobs with a steady supply of road infrastructure works, remote housing and defence projects.

There is a general government net operating balance deficit of $410 million in 2024-25, and surpluses every year over the forward estimates

Quotes attributable to Chief Minister and Treasurer, Eva Lawler:

“This is a common-sense budget, a budget that acknowledges our two highest priorities — keeping Territorians safe and getting Territorians working.”

“I’m working every day to deliver my common sense and comprehensive plans to lower crime and get the Territory working – and that’s why we are delivering record amounts to support police and fully fund our schools.”

Source: Northern Territory Government newsroom

The Australian Government has released a medium and long-term strategy that establishes the role gas will play in the transition to net zero by 2050, securing affordable gas for Australia as we move to a more renewable grid, and confirming our commitment to being a reliable trading partner.

Minister for Resources and Northern Australia Madeleine King has released the Future Gas Strategy which will support a Future Made in Australia and ensures decisions on gas supply and production will be based on the best possible information.

The Strategy is centred on six principles that will underpin government policy on gas.

• Australia is committed to supporting global emissions reductions to reduce the impacts of climate change and will reach net zero emissions by 2050. 
• Gas must remain affordable for Australian users throughout the transition to net zero. 
• New sources of gas supply are needed to meet demand during the economy-wide transition. 
• Reliable gas supply will gradually and inevitably support a shift towards higher-value and non-substitutable gas uses. Households will continue to have a choice over how their energy needs are met.
• Gas and electricity markets must adapt to remain fit for purpose throughout the energy transformation.
• Australia is, and will remain, a reliable trading partner for energy, including LNG and low emission gases.

The Future Gas Strategy also includes a detailed analytical report on gas demand and supply produced after an extensive period of work and consultation.

The Strategy identifies the following actions: 

• Prevent gas shortfalls by working with industry and state and territory governments to encourage more timely development of existing gas discoveries in gas-producing regions.
• Reduce gas related emissions by working with industry and regulators to minimise venting and flaring of methane from operations and consider further emissions reductions measures through the Government’s six decarbonisation plans. The Government will also adopt technology-neutral approach to exploration data acquisition to minimise seismic surveying where possible. 
• Support households and businesses through the transition to net zero by working closely with the states and territories to manage pricing impacts and the Gas Market Code. 
• Empowering First Nations peoples by clarifying consultation requirements for offshore resources activities and pursue benefit-sharing to ensure First Nations people are partners in the transition to net zero.
• Promote geological storage of CO2 and support our region’s transition to net zero by releasing acreage for offshore CCS and establish a new initiative on regional cooperation on transboundary carbon capture and storage which will provide options for energy security and carbon management solutions for our regional partners.

“Gas plays a crucial role in supporting our economy, with the sector employing 20,000 people across the country, including remote and regional communities,” Minister King said.

“Ensuring Australia continues to have adequate access to reasonably priced gas will be key to delivering an 82 per cent renewable energy grid by 2030, and to achieve our commitment to net zero emissions by 2050.

“The Strategy makes it clear that gas will remain an important source of energy through to 2050 and beyond, and its uses will change as we improve industrial energy efficiency, firm renewables, and reduce emissions. 

“But it is clear we will need continued exploration, investment and development in the sector to support the path to net zero for Australia and for our export partners, and to avoid a shortfall in gas supplies.”

Gas is crucial for A Future Made in Australia as it supports manufacturing, food processing and refining of critical minerals which will help Australia and the world to lower emissions. Gas supplies 27 per cent of Australia’s energy needs and represents 14 per cent of Australia’s export income.

Gas will play an important role in firming renewable power generation and is needed in hard-to-abate sectors like manufacturing and minerals processing until such time as alternatives are viable and can be deployed.

Since 2022, the Australian Government has introduced the mandatory Gas Code of Conduct, a renewed Heads of Agreement with LNG exporters, and strengthened the Australian Domestic Gas Security Mechanism (ADGSM) to ensure Australian households and businesses have affordable gas supplies.

The Future Gas Strategy is available on the Department of Industry, Science and Resources website.

Source: The Hon Madeleine King MP

Minister for Resources and Minister for Northern Australia

New gas supplies ‘needed’ says Bowen as Gippsland wind takes off - The Australian Financial Review

Energy Minister Chris Bowen believes Australia has no option but to seek new supplies of gas even as the government accelerates rollout of renewables, including green-lighting preliminary work on six potential offshore Gippsland wind projects.

In comments to major energy buyers at a conference in Melbourne on Wednesday, Mr Bowen will declare that gas will play an important role filling the gap left by wind and solar, noting that unlike the opposition’s support for nuclear and coal, the energy source can be turned on and off at short notice.

“With current supplies of gas dwindling, new supply will be needed – even as we electrify at pace,” says Mr Bowen, pictured with Victorian Energy Minister Lily D’Ambrosio. Oscar Colman

“Frankly, there are exaggerated claims on all sides of the gas debate,” he will tell the conference organised by the Energy Users Association. “Slogans like ‘gas-led recovery’ and ‘no new gas’ are equally catchy – and equally unhelpful to explaining the proper role of gas in our net zero energy mix.

“Gas will play an important role in electricity by firming and peaking renewables.”

The remarks come ahead of the release in “coming weeks” of Labor’s future gas strategy – a policy plan being developed by Resources Minister Madeleine King – which Mr Bowen will say is about ensuring the use of gas is “guided more by the evidence and less by the culture wars”.

“While technologies like green hydrogen will be vital – and I am very optimistic about Australia’s role in the global hydrogen supply chain – there are not yet substitutes for gas in many industrial settings,” Mr Bowen will say, according to speech notes.

Divisive

Labor has spent much of its first two years in office juggling the challenge of managing the politics of gas, which has put it into direct conflict with the Greens and environmental groups while fueling distrust inside the industry over price caps, regulations and taxes.

Federal Labor has also clashed with Victorian Energy Minister Lily D’Ambrosio, who has accused Ms King of acting “more like a Coalition minister”.

It also comes after shareholders sunk Woodside Energy’s climate action plan, which the company’s leadership had previously defended as a way to “thrive through the energy transition” and be part of the solution to climate change. BHP, Rio Tinto, Santos, AGL Energy and Origin Energy have all put their climate plans up for non-binding votes, with Woodside’s the first to be rejected.

Mr Bowen will say that “with current supplies of gas dwindling, new supply will be needed – even as we electrify at pace”.

Labor’s support for gas is aimed at buttressing the rollout of renewables, led by solar and wind, with Mr Bowen telling the peak body for the nation’s biggest energy users that bidders have been listed for a Victorian capacity investment scheme tender. Organised to provide an additional 600 megawatts of capacity by 2030, the government has received offers for 19,000 megawatts, 32 times more than it asked for.

Gippsland wind

In addition, Mr Bowen will announce the granting or offers of feasibility licences in the Gippsland offshore wind zone. The winning proponents are High Sea Wind, Gippsland Skies, Blue Mackerel North, Kut-Wut Brataualung Project, Ørsted Offshore Australia 1 and Star of the South Wind Farm.

“That’s enough to power the Gippsland region’s annual industrial consumption 100 times over, or more electricity than the entire state of Victoria generated last year,” Mr Bowen will say. “Even just some of that potential will make a substantial contribution to filling the gap left by coal in Victoria and across the NEM [National Electricity Market].”

Mr Bowen will add Gippsland is the first of six zones around the nation, with the International Energy Agency describing wind in a category of its own as “variable baseload power” – with “similar capacity factors as gas and coal-fired power plants”.

The feasibility licences will allow the project developers to undertake environmental assessments and geotechnical surveys and obtain approvals.

Speaking at a separate solar and storage conference in Brisbane on Wednesday, opposition energy spokesman Ted O’Brien will attack Mr Bowen’s “all-eggs-in-one-basket renewables-only approach” to energy and climate policy while offering a qualified defence of rooftop solar.

Mr O’Brien will declare that rooftop solar appeals to him instinctively as a Liberal, given “I believe in individual freedom, property rights, enterprise and competition”.

”Australia’s extraordinary growth of rooftop solar over the last decade stems from individuals exercising their free choice to adopt the technology,” he will say. “Their decisions as home owners to put solar panels on their roofs has been an assertion of private property rights done in contract mostly with small businesses in a competitive market.”

However, Mr O’Brien will challenge the rooftop solar industry for the issues it causes in the NEM.

“When the sun is shining brightly, typically in the middle of the day, it can saturate the grid and force curtailment of electricity,” he will say. “Among those affected by curtailment can be rooftop solar owners themselves who struggle to feed electrons onto the grid and also other energy generators, both renewable and non-renewable alike.

“Given our biggest threat to our 24/7 power system is a lack of supply, these forced curtailments send all the wrong signals to potential investors across all sources of energy generation which we need to bring to market.”

You can also find the article here on The Australian Financial Review website.

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