Industry News

The Northern Territory Regional Logistics Hubs have been accepted onto the Australia National Infrastructure Priority list.

The Australian Government committed $440 million in planned equity towards a network of regional logistics hubs across the Northern Territory in the October Federal Budget.

This is a significant step forward for the project and the Territory as the Stage 1 Business Case and the program is now listed as a national infrastructure priority.

The proposal identifies the need for appropriately located terminals, rail sidings and warehousing along the Darwin-Tarcoola rail line.

The Regional Logistics hubs are increasingly important to capitalise on the Northern Territory’s rich resource base in gas and minerals deposits, rare earths and solar irradiance.

The estimated total investment from several proposed projects in mining, minerals and energy industries across the NT is over $38 billion. This investment is expected to support an estimated 6,000 plus construction jobs. Much of the investment and employment increase will occur in remote and very remote regions with higher proportions of First Nations people.

To realise this opportunity, the capacity and efficiency of rail freight and logistics infrastructure along the primary north-south Darwin-Tarcoola rail corridor will need to be upgraded.

The infrastructure will support the development and operation of projects in resources, agriculture, renewable energy and construction, which is essential to achieve the NT Government’s goal of a $40 billion economy by 2030.

Additionally, the regional logistics hubs will increase supply chain capacity across the Territory to benefit communities and increase employment in remote areas.

Quote Attributable to Minister for Infrastructure Planning & Logistics:

“Projects like the Northern Territory Regional Logistics hubs greatly support our ambitious target of a $40 billion economy by 2030.

“By improving rail efficiency and intermodal capacity along the north-south corridor we will support rail volumes and remove investment barriers for development of proposed mining, agriculture and energy projects across the Territory.

“Having projects accepted onto the Australian National Infrastructure Priority list is great news for the Northern Territory, I will continue to work with the Federal Government and Infrastructure Australia to ensure the best outcomes are achieved.”

Source: NT Government Newsroom 

SHEFFIELD Holdings has acquired a 9.24% stake in Beetaloo Basin explorer Falcon Oil & Gas.

The acquisition comes shortly after the Northern Territory government advised it had implemented all the recommendations from an independent inquiry into fraccing, paving the way for industry to begin large-scale production from what has been described by some as the "hottest play on the planet".

Dublin-headquartered Falcon Oil & Gas holds a 22.5% interest in exploration permits EP76, EP98 and EP117 coving around 4.6 million acres of the Beetaloo Sub-Basin alongside operator Tamboran Resources.

This week, the company told the market Sheffield Holdings had acquired 96.47 million shares, representing 9.24% of Falcon's issued and outstanding shares.

The move by billionaire Brian Sheffield to acquire a substantial stake in the minority partner follows an initial investment where Sheffield acquired 38.78% of the permits via a deal with Tamboran.

The permits make up the Amungee project with gas contracted to Origin Energy in a binding 10-year gas sales agreement for up to 36.5 petajoules per annum.

In total Amungee should produce around 100 terajoules per day.

Big rig to deliver big results

Last month, project operator Tamboran announced the arrival of the largest onshore drilling rig to Australia.

In March, US drilling contractor Helmerich & Payne mobilised a massive 2000 horsepower FlexRig to the Northern Territory.

Once operational, it will be the largest and most powerful onshore drilling rig in the country. 

Helmerich & Payne are major investors in Tamboran Resources which will use the rig across its vast acreage holding in the Northern Territory.

The rig is capable of drilling more than 4000-metre horizontal sections. 

Tamboran has contracted the rig for a minimum of two years. 

Source: ENB - Energy News Bulletin

The first ever whole-of-government strategic plan for water across the Northern Territory has been released today by the Minister for Environment, Climate Change and Water Security, Lauren Moss.

The Territory Water Plan is a package of actions that will set the foundation for delivering water security for all Territorians – now and into the future.

Water security is about balancing competing and complex water demands, pressures and challenges over time to ensure Territorians have access to safe and reliable drinking water, to support our communities and our growing economy, and to protect our environment, culture and our Territory lifestyle.

As part of Budget 2023, the Territory Labor Government announced it will be investing $13.5 million over three years to implement the Territory Water Plan.

The Territory Water Plan highlights 16 priority actions that aim to deliver water security for all Territorians now and into the future including:

• Developing new safe drinking water legislation to drive transparency and improvement in drinking water quality

• Securing Darwin’s future water supply through the Manton Dam Return to Service and Adelaide River Off-stream Water Storage projects

• Supporting safe drinking water for remote Aboriginal communities and homelands through community engagement, capacity-building and co-investment with the Australian Government

• Enhancing Aboriginal Territorians’ participation in water management and improving our understanding of the cultural values of water

• Accelerating water science to support sustainable development that underpins a $40 billion Territory economy by 2030

• Driving water efficiency in the public sector through a NT Government demand management strategy

• Delivering good governance, transparency and accountability across government in water management; and

• Protecting key environmental and cultural values as well as supporting the Territory’s resilience to climate change and its impacts on water security.

Last month the independent NT Controller of Water Resources, Mr Andrew Johnson PSM was appointed and the Territory Labor Government will be establishing an Aboriginal Water Advisory Council by 2024 to ensure Aboriginal Territorians views on strategic water issues are represented.

To learn more and view the Territory Water Plan go to watersecurity.nt.gov.au

Quotes from Minister for Environment, Climate Change and Water Security Lauren Moss:

“The Territory Labor Government is committed to protecting and effectively managing our water resources, so it is timely to release the first ever Territory Water Plan to crystallise our key commitments and actions.

“Delivering the actions in this plan will ensure we manage water responsibly and sustainably while supporting economic development for the Territory to thrive and prosper.

“As Minister for Environment, Climate Change and Water Security, I will champion the Territory Water Plan and oversee the implementation of its actions on behalf of the Territory Labor Government.”

Source: Northern Territory Government Newsroom

The first ever whole-of-government strategic plan for water across the Northern Territory has been released today by the Minister for Environment, Climate Change and Water Security, Lauren Moss.

The Territory Water Plan is a package of actions that will set the foundation for delivering water security for all Territorians – now and into the future.

Water security is about balancing competing and complex water demands, pressures and challenges over time to ensure Territorians have access to safe and reliable drinking water, to support our communities and our growing economy, and to protect our environment, culture and our Territory lifestyle.

As part of Budget 2023, the Territory Labor Government announced it will be investing $13.5 million over three years to implement the Territory Water Plan.

The Territory Water Plan highlights 16 priority actions that aim to deliver water security for all Territorians now and into the future including:

• Developing new safe drinking water legislation to drive transparency and improvement in drinking water quality
• Securing Darwin’s future water supply through the Manton Dam Return to Service and Adelaide River Off-stream Water Storage projects
• Supporting safe drinking water for remote Aboriginal communities and homelands through community engagement, capacity-building and co-investment with the Australian Government
• Enhancing Aboriginal Territorians’ participation in water management and improving our understanding of the cultural values of water
• Accelerating water science to support sustainable development that underpins a $40 billion Territory economy by 2030
• Driving water efficiency in the public sector through a NT Government demand management strategy
• Delivering good governance, transparency and accountability across government in water management; and
• Protecting key environmental and cultural values as well as supporting the Territory’s resilience to climate change and its impacts on water security.

Last month the independent NT Controller of Water Resources, Mr Andrew Johnson PSM was appointed and the Territory Labor Government will be establishing an Aboriginal Water Advisory Council by 2024 to ensure Aboriginal Territorians views on strategic water issues are represented.

To learn more and view the Territory Water Plan go to watersecurity.nt.gov.au

Quotes from Minister for Environment, Climate Change and Water Security Lauren Moss:

“The Territory Labor Government is committed to protecting and effectively managing our water resources, so it is timely to release the first ever Territory Water Plan to crystallise our key commitments and actions.

“Delivering the actions in this plan will ensure we manage water responsibly and sustainably while supporting economic development for the Territory to thrive and prosper.

“As Minister for Environment, Climate Change and Water Security, I will champion the Territory Water Plan and oversee the implementation of its actions on behalf of the Territory Labor Government.”

Source: Northern Territory Government newsroom

An impending and material cut to the Northern Territory gas supply is exacerbating the looming East Coast gas crisis.

Production at the Blacktip gas field, offshore in northern Australia, has fallen faster than expected, raising fears about energy security both within the NT and further afield.

Gas from Blacktip, which is owned by Italian multinational Eni, is used to generate electricity for Top End users, with any excess piped to East Coast markets. Production peaked in 2019 at about 100 million cubic feet per day and has declined ever since.

It fell by about 50 per cent last year – a trend that has worryingly continued into 2023.

The stark cut in production resulted in a two-month shutdown last year of the northern gas pipeline between the NT and the East Coast gas grid, the only pipeline link.

And the situation does not look like it will be improving at Blacktip any time soon. The NT Power and Water Corporation recently advised Incitec Pivot about potential gas reserves issues at the Blacktip gas field, with a cut to forecast supply under the parties’ gas supply agreement from this month.

The cut in Blacktip production adds to both State and national concerns in relation to energy security, as the only other gas production in the NT comes from Central Petroleum’s Amadeus basin gas fields.

However, this does pave the way for new sources of production, with the NT Government likely to be highly-supportive of any new gas supply projects – amenable to a potential saviour, if you like. The Beetaloo Basin, within the Greater McArthur Basin and said to host some 500 trillion cubic feet of in-place gas resources, appears to be a standout option.

Holding the biggest tenement position across the Beetaloo-McArthur Basins is Empire Energy Group, which is maturing its portfolio of onshore, long-life oil and gas opportunities. Already an early mover in the Beetaloo, Empire’s path to first gas production is now on an accelerated schedule amid the looming East Coast gas shortage.

There have previously been questions around whether there was a big enough domestic market to warrant development of the scale of Empire’s greeneld, unconventional gas project. But with the production drop from the Blacktip eld and long-term gas supply issues, success at the project could clearly help bolster future domestic supply.

Empire Energy Group managing director Alex Underwood said: “The production issues at the Blacktip Gas Field that provides energy for electricity generation for the people of the NT, power for NT mining operations and industrial activities as far as Mount Isa and the East Coast, underscore the critical importance of gas for our households and economy. Empire is rapidly progressing towards pilot production from the Beetaloo, aiming to be producing sales gas by early 2025. This will provide the NT with energy it needs, putting downwards pressure on power bills and enabling economic growth.”

Beetaloo’s in-place gas resources are from entirely within the middle Velkerri B layer of the Mesoproterozoic Roper Group – where Empire is targeting. While only a handful of horizontal wells have been drilled to date, Velkerri B is the most prospective of the stacked, organic-rich shales of the Roper Group.

It is where both the Santos-Tamboran and Origin-Falcon joint ventures made big steps with lateral wells across the basin.

Amid accelerating urgency for new gas supply options, Empire substantially increased the contingent resources of its wholly-owned EP187 permit late last month to what it says is now a “nationally signicant resource”. An independent review lifted the estimated 2C contingent resource by 270 per cent to a sizable 1739 petajoules.

The material upgrades in contingent resources to LNG scale help make the case to accelerate towards an early gas development option.

Empire further solidified its potential to step in and help fill the supply shortage by recently confirming critical commercial flow rates from its Carpentaria-2H gas well, its first horizontal well into the Beetaloo sub-basin. It pulled up an impressive 323 terajoules, or 281 million standard cubic feet (mmscf), over 127 days. That equated to a normalized rate of 2.75 terajoules (2.4 mmscf) each day per 1000m.

The impressive flow rates have already elicited the attention of multiple parties, who have expressed strong interest in buying Empire’s Beetaloo gas in both the pilot phase and full development phase.

With a recent green light from the NT government to move into production, along with adequate capital resources, Empire is now progressing towards development drilling and – more importantly – cash flow. A final investment decision on an initial gas project is due by the year’s end ahead of the anticipated first gas production in 2025. 

Source: Business News via Empire Energy Group

Snippet of article can be viewed here

Top End Energy Limited (Top End or the Company) (ASX:TEE) is pleased to announce that the exploration agreement for Exploration Permit (EP) 258 (the Permit) in the McArthur Basin, Northern Territory, has now been executed. The execution of the agreement paves the way for the formal grant of the Permit.

HIGHLIGHTS

• Execution of the Exploration Agreement between the Company and the native title holders of EP 258

• Critical step for achieving grant of the Permit, which would represent the first EP to be granted in the Northern Territory since 2015

• Grant of the Permit expected in the coming weeks

EXPLORATION AGREEMENT WITH NATIVE TITLE HOLDERS

The Company announced in April 2023 that the Northern Land Council (NLC) had received instructions from the native title holders of EP 258 for the Top End (Default PBC/CLA) Aboriginal Corporation (Top End PBC) to enter into the agreement which governs the terms and conditions for exploration on the Permit (the Exploration Agreement).

The Top End PBC is the native title body corporate acting as the agent for the native title holders. Pursuant to the NLC’s internal processes, the Exploration Agreement has now been executed by the Top End PBC and the Company.

Execution of the Exploration Agreement has been a critical path item to achieving grant and, subject to final approval from the Northern Territory Government, we expect formal grant to occur in the coming weeks. 

To view full ASX announcement, click here.

Highlights

• The Northern Territory Government has provided Tamboran exclusivity over 170-hectares (420- acres) on the Middle Arm Sustainable Development Precinct (Middle Arm) for a proposed LNG development, Northern Territory LNG (NTLNG). NTLNG is expected to be supported by low reservoir CO2 gas from the Beetaloo Basin.

• The Middle Arm acreage has been allocated on a “Do Not Deal” basis for twelve-months, allowing Tamboran to progress a Concept Select phase for a proposed NTLNG development.

• The site under exclusivity is expected to host a Liquefied Natural Gas (LNG) development with an initial capacity of 6.6 million tonnes of LNG per annum (MTPA), with the potential for expansion, subject to completion of the Concept Select study, successful Beetaloo appraisal drilling and flow testing, and Government approvals.

• NTLNG represents the first fully integrated onshore LNG development in Northern Australia where upstream, midstream and downstream production and processing are based in the Northern Territory.

• Tamboran is targeting first LNG production by 2030, with a near-term commitment to ensure Australia’s Northern Territory and East Coast gas markets are well supplied.

• FEED studies remain ongoing for the proposed 100 million standard cubic feet per day (mmscfd) domestic pilot development, with volumes contracted to Origin Energy for 10-years.

To view full release, please click here

The Northern Territory Government has today taken the next big step towards developing the Middle Arm Sustainable Development Precinct as a new clean energy, investment and jobs powerhouse.

Powered by renewables and lower-emissions energy, the precinct is being developed to attract industries that reflect what the Territory’s future economy will look like – including hydrogen, carbon capture, natural gas, advanced manufacturing and minerals processing.

To give interested companies certainty as they develop projects at Middle Arm, the Territory Government has issued ‘not to deal’ commitments to five proponents over specific parcels of land at the precinct.

These commitments mean that their preferred sites in Middle Arm will be set aside for up to 12 months to provide each proponent confidence and certainty to continue developing their proposals. The proponents are:

·       TEH2, 100% owned by Total Eren – renewable energy: a global independent power producer, is proposing to develop a green hydrogen production facility using solar energy with the capability of producing more than 80,000 tonnes of renewables-based hydrogen per annum for domestic and export potential.

·       Fortescue Future Industries (FFI) – renewable energy: the global green energy company, is proposing to develop a green hydrogen hub, comprised of green hydrogen and green ammonia production and export facilities.

·       Tivan – critical minerals: is proposing to produce vanadium oxides through application of innovative downstream processing technology using feedstock sourced from Tivan's Speewah and Mount Peake Projects; titanium dioxide and iron oxide also produced as by-products. Tivan is also working to facilitate an industrialisation pathway for vanadium redox flow batteries.

·       Tamboran Resources Limited – natural gas: a lower CO2 emissions liquefied natural gas (LNG) export facility.  Gas from this export facility will play an important role in the decarbonisation plans of our neighbours and trading partners in Asia and beyond.

·       Avenira – critical minerals: is proposing a lithium-ferro-phosphate (LFP) cathode manufacturing facility, which will manufacture pre cursor battery cathode materials from critical minerals, including phosphate sourced from the Wonarah Project in the Northern Territory.

Collectively, these projects represent tens of billions of dollars in capital investment, with the entire Middle Arm development creating around 20,000 jobs in the Territory.

These companies will now progress their facility designs, engineering work and pre-feasibility studies and environmental approvals.  They will be required to comply with all conditions set by the NT EPA as part of the Strategic Environmental Assessment process for the precinct which is currently underway.

The Northern Territory is positioned to be a global leader in low-emissions energy export and critical minerals processing, taking advantage of our world-class solar and energy resources, and meeting strong international market demand to facilitate energy transition globally.

Middle Arm is attracting significant interest and will enable the development of an interconnected hydrogen industry and utilise carbon capture, to accelerate low emission industry development.

A Carbon Capture Utilisation and Storage Hub as part of the Middle Arm Sustainable Development Precinct will also be developed to mitigate emissions from existing and future natural gas processing, and will accelerate low-emission industry development, including hydrogen production.

Middle Arm is one of the most exciting and significant sustainable economic developments in the nation, and it will support thousands of jobs for Territorians.

Quotes attributed to Chief Minister Natasha Fyles:

“Middle Arm is about building the Territory’s future. This is about new sources of renewable and low-emissions energy, new investment, new industries, and most importantly, new jobs for Territorians.

“I can give you 20,000 good reasons why this is important. This will create new, permanent, long-term jobs for the Territory, and that’s what matters to me. Clean energy jobs are the future, and that’s the future we’re building for the Territory.

“We’re absolutely committed to growing our economy while also transitioning to net zero emissions, and Middle Arm will play a huge part in that transition. This is what responsibly decarbonising and diversifying our economy looks like.

“We’ve always said that sustainability will be at the core of Middle Arm, and our focus on clean energy demonstrates that. An environmental strategic assessment is underway now for the entire precinct.

“A lot of nonsense gets spouted about Middle Arm, but today’s announcement shows the Territory, investors and the rest of the country just how committed my government is to making this a reality.”

Source: NT Government newsroom

INPEX CORPORATION today announced its entity INPEX Operations Australia Pty Ltd (“INPEX”) has been jointly awarded an A$ 1 million ‘Regional Hydrogen Hubs’ grant1 from the Australian Government to conduct a feasibility study into the growth potential of a clean hydrogen market in Darwin, northern Australia.

The Darwin Clean Hydrogen Hub joint study between INPEX, Santos, Xodus and Australia’s national science agency CSIRO will explore opportunities to provide clean hydrogen solutions – with domestic and international hydrogen supply chains as potential beneficiaries.

Tetsu Murayama, INPEX President Director Australia, said the company is appreciative of the Australian Government’s A$ 1-million grant, to deliver vital studies assessing the potential of a Darwin-based Hydrogen Hub.

“The INPEX-led Darwin Clean Hydrogen Hub joint study has the potential to inform future investment decisions contributing to northern Australia’s hydrogen value chain development.

“Having played an active role in the Darwin business community for many years, we are proud to be supporting the Northern Territory’s cleaner energy future through this study,” Mr Murayama said.

The joint study also directly complements the current CSIRO-led Low Emission Hub business case being conducted with INPEX, Santos, Woodside Energy, Eni, Xodus and the Northern Territory Government.

The Darwin Clean Hydrogen Hub joint study represents a forecast 18-month program focusing on:

• market demand for hydrogen and its derivatives (e.g. methanol and ammonia) as fuel in transport and power generation, and feedstock for chemicals

• renewable energy sites and infrastructure for water electrolysis to produce and deliver hydrogen and its derivatives to market

• hydrogen production from natural gas and carbon capture and storage capacity requirements

• bulk and distributed storage requirements, and,

• domestic and international hydrogen supply chains.

1 “Regional Hydrogen Hubs: Development and Design Grants” program.

INPEX seeks to develop a hydrogen business, which is one of the five net-zero businesses outlined in the company’s INPEX Vision @2022. The company plans to commercialise three or more projects globally by around 2030 and aims to produce and supply 100,000 tonnes or more of hydrogen/ammonia per year.

To view full release, click here.   

Source: INPEX

The Territory Labor Government has awarded a tender for a wind generation study, which will inform near–term deployment of wind collection technology to gather data to de-risk and fast track investment.

Global consulting company Jacobs will deliver the study from its office in Darwin, with a clear commitment to deliver local benefits and initiatives to support local employment and industry development.

The study will identify prospective locations for large-scale wind generation in the Territory and develop a wind measurement strategy. The final study is expected to be delivered later this year.

While the Territory’s solar resources are well recognised, the Territory could also have strong wind resource potential. Currently there is limited publicly available information to assist prospective proponents and investors to undertake more detailed assessments of the Territory for large-scale wind generation.

In Budget 2023, the Territory Government allocated $1.7 million to accelerate hydrogen industry development. A key priority is to better understand the Territory’s wind resource potential, and to compile and publish pre-competitive data relating to wind resources for renewable energy generation.

Large-scale renewable energy generation and storage is necessary to achieve the Northern Territory’s strategic objectives, including 50% renewable energy and a $40 billion economy by 2030, and net zero emissions by 2050.

Quotes attributable to Minister for Renewables and Energy Selena Uibo:

“The wind study will provide the information necessary to understand the potential to use wind as an alternative renewable energy resource in the Territory.

“This study could unlock new opportunities for renewable energy development in regional and remote areas of the Territory, creating new local jobs and boosting regional economic development.

“Diversification of the Territory’s renewable energy opportunities is critical to our pathway to a net zero emissions future.”

Quotes attributable to Michael Christie, Director of Operations Northern Australia at Jacobs:

“With a 40-year history in the Northern Territory, Jacobs is excited to be part of this project and to support the Territory Government’s renewable energy development.

“We bring strong experience working on wind farm projects not only in Australia, but also globally.”

“Climate change is a key element of Jacobs’ strategic focus, and we are working with a variety of government and private clients to support decarbonisation and renewable energy sources for the long term. We look forward to working in partnership with the Territory Government to identify potential wind energy opportunities".

Source: NT Government Newsroom