Industry News

A renewables future is one step closer for the Tiwi Islands with a design and construct tender for a pilot program in Wurrumiyanga awarded to Circular Solutions.

The Territory Labor Government is investing $8.6 million over four years towards its Renewable Remote Power Program - including $6.1 million towards the Wurrumiyanga Solar Infill and Energy Storage Pilot Project.

Circular Solutions will replace some of the current diesel generated power supply with renewable technology, with works expected to be completed by April 2024.

Wurrimuyanga is already operating some solar technology and this investment will significantly increase the energy generated from solar, with the installation of additional solar PV panels and a new battery energy storage system.

The project will add 1.1 megawatts of additional solar PV and a Battery Energy Storage System of about 3 megawatt hours. It is expected that the percentage of renewable energy delivered to the community will increase to almost 50 per cent.

The Territory Government is also investing $2 million over the next two years to advance the delivery of clean and reliable electricity to remote communities across the Territory. This investment has so far resulted in a framework to deliver renewable energy systems to the 73 remote communities supplied by Indigenous Essential Services (IES), including opportunities for innovative technologies such as hydrogen.

Work is progressing on the detailed analysis of each IES community to map the optimal renewables development pathway, considering, among other things, the design and configuration of existing energy assets, electricity demand profiles and forecast growth.

This pilot is an important step towards the Territory Labor Government achieving its target of 50 per cent renewables by 2030, which includes a 70 per cent target in all communities supplied by IES. Renewable investments in remote power system services can lead to diesel cost savings and deliver substantial reductions in emissions as diesel is replaced, as well as generating local jobs.

Quotes attributable to Chief Minister Natasha Fyles:

“Energy and renewables play a key role in unlocking private investment and creating local jobs – and the Territory Labor Government is taking every opportunity.

“We will keep doing the hard work as we push towards our target of 50 per cent renewables by 2030 and zero emissions by 2050.

“A renewables future is now one step closer for the Wurrumiyanga community and we look forward to the lessons learnt from this project being extended to other remote Territory communities.”

Quotes attributable to Minister for Renewables and Energy Selena Uibo:

“Wurrumiyanga is an incredible place, both for its people and beautiful country. This renewable energy project will help to protect and preserve it and ensure future generations can continue to thrive with help from solar energy.

“I am proud that the Territory Labor Government is delivering this important project and changing the way power is generated in our communities for a cleaner, greener Territory.”

Source: NT Government Newsroom

Nautilus Aviation, Northern Australia’s largest helicopter operator has announced the expansion of its fleet, adding five additional Bell 407GXi’s.

Nautilus Aviation recently celebrated its 30th year of operations and remains a privately owned helicopter operator with a mixed turbine fleet of Bell 206, 206L4, 505, 407 and 412EP helicopters. In 2018, it was the first helicopter operator in Asia Pacific to take delivery of the Bell 505.

In late 2022, Nautilus Aviation took delivery of the first of five custom built Bell 407GXi aircraft with a second delivered in mid-January 2023. These helicopters were immediately put into operation servicing our commercial and VIP clients.

The Bell 407 GXi is a new generation of high-powered single engine turbine helicopter originally developed from the Bell 206L with dramatic capability enhancements most notably in the 4-blade fully articulated rotor head delivering speeds in excess of 135 kts and tremendous hot and high performance.

Nautilus Aviation will continue to take delivery of the remaining orders of the BELL 407GXi aircraft in the first quarter of 2023 and assists Nautilus Aviation’s commitment to further reduce our environmental footprint.

BELL 407GXi SPECIFICATION:

• Passengers: six
• Cruise speed 240km/hr
• Approximate Payload 600kg
• Ability to lift up to a 1 ton external load

CEO Mr Aaron Finn: “Based on our helicopter fleet and steadfast commitment to the safety of all passengers and personnel, we have earned and developed a reputation for quality. The Bell 407GXi helicopter has great all-round visibility and we appreciate Bell’s outstanding customer service. After careful consideration of our operational requirements and a commitment to further reduce our environmental footprint through reduced fuel consumption, I am confident these new fleet additions will enhance our reputation and position us for growth as the Australian economy continues its recovery from the pandemic.” We look forward to introducing two of our Bell 407 fleet into the Northern Territory in the very near future Mr Finn said.

Bell’s managing director in Asia Pacific, Jacinto Monge, said, “As Northern Australia’s largest helicopter operator, Nautilus’ selection of the Bell 407GXi demonstrates the confidence they have in the ability of the Bell 407GXi to fulfil their multiple mission requirements. We are honoured that Nautilus has chosen the Bell 407GXi and we look forward to providing the support they need for entry into service.”

For more information visit https://www.nautilusaviation.com.au or contact Nautilus Aviation on:

email: info@nautilusaviation.com.au / phone: 07 4034 9000

To view full information brochure, click here.

Armour Energy Limited, (Armour), is pleased to announce that it has signed a Heads of Agreement (HOA) with Australian Natural Diamonds Ltd, a wholly owned subsidiary of Lucapa Diamond Company Limited (ASX: LOM), for gas supply to the Merlin Diamond Project from its Glyde discovery in EP 171 in the McArthur Basin, Northern Territory.

HIGHLIGHTS

▪ HOA in place for 14 years supply of gas produced from the Glyde gas discovery to Merlin Diamond Project.

▪ The agreement reinforces the hydrocarbon potential of the McArthur Basin in the Northern Territory and Armour’s ability to provide this valuable resource to the domestic market.

▪ Successful execution of the development plan will represent the first production from the Basin which lies within 20 km of the Merlin site. The HOA contemplates the sale of gas produced from the Glyde Field from production startup (mid-CY2025) for 14 years through to the end of CY2039 providing fuel to support the development of the Merlin Diamond Project which is currently undergoing a feasibility study. This is anticipated to be a minimum of 7 PJ of gross sales gas over the contract term.

The terms set out in the HOA will form the basis of a fully termed Gas Sales Agreement (“GSA”) once all the conditions precedent have been met. 

For full ASX announcement, click here

Applications are now open for the Territory Labor Government’s Geophysics and Drilling Collaborations program, to support an industry that creates thousands of local jobs.

Up to $3million in grants will be awarded in 2023-24, in a program designed to encourage and assist exploration activity in the Territory.

Part of the $9.5 million Resourcing the Territory program, these grants aim to address geoscientific knowledge gaps, advance exploration activity and support the discovery and development of resources in the Territory.

The scope of exploration activities that are eligible for co-funding has been broadened in this round to support a wider range of exploration activities.

Grants are awarded to companies that are exploring in new areas or using innovative techniques.

Information gained from collaborative projects are released to the public six months after the completion of field work, to enhance publicly available knowledge on the Territory’s geology and resources, and encourage further exploration.

A huge driver of the economy, the total value of mineral production in the Northern Territory was $4.86 billion last year, with 4,400 people employed within the industry.  

The Territory has 15 of the world’s critical minerals, with high geological potential for a further 13.

Demand for these critical minerals is projected to rapidly grow with the increasing transition to renewable energy and battery storage, along with the crucial role of these minerals in areas such as medicine and defence.

This presents a significant economic and strategic opportunity for the Northern Territory, and one that is a key part of the Territory Government’s plan to build a $40 billion economy by 2030.

Quotes from Minister for Mining and Industry, Nicole Manison:

“We know that resources is the biggest contributor to the Territory economy, creating thousands of local jobs directly and indirectly.

Our $9.5 million Resourcing the Territory program is the biggest investment by any Territory Government into programs to attract and support resources exploration in the Territory.

The program is designed to accelerate mineral exploration and discovery that will drive mining development and create even more jobs right across the Territory.”

Source: NT Government Newsroom

Energy Club NT are pleased to announce on the 16 February 2023 a memorandum of understanding was signed between the Clean Energy Council and Energy Club NT. 

The newly formed strategic alliance is a positive step for both industry bodies who share a common objective of increasing awareness and engagement in the clean energy transition and transformation across Australia, and the Northern Territory.

This alliance will ensure Energy Club NT members will receive up to date information in relation to renewable energy and the opportunities it offers all industries whilst working towards the Federal Governments decarbonisation goals for a 100% renewable Clean Energy future.

We welcome the team from the Clean Energy Council to the Energy Club NT and look forward to a long healthy relationship.

For more information on the partnership, please get in touch with the Energy Club

EP 98 Operational Update: Stimulation program commences at Amungee 2H

Highlights

• Tamboran has commenced its first Beetaloo Basin stimulation program at the Amungee 2H (A2H) well in 38.75 per cent owned and operated EP 98.

• The program, which will include up to 24 stages over a 1,200-metre horizontal section within the Mid-Velkerri “B Shale”, is planned to be completed within 2 – 3 weeks. The campaign is being conducted by Condor Energy Services, a respected Australian energy services provider.

• The A2H stimulation program has been optimised with proven US-style shale stimulation designs and techniques, including the use of 5-½-inch casing, widely considered the optimal casing size to place a high-rate hydraulic proppant.

• This increased casing size allows for the placement of sand and fluid at an increased rate to the perforations during stimulation. This is a proven concept that has been known to deliver significantly higher production rates and Estimated Ultimate Recovery (EUR).

Tamboran Resources Limited (ASX: TBN) Managing Director and CEO, Joel Riddle, said:

“This is an exciting milestone for Tamboran, being the Company’s first operated simulation program in the Beetaloo Basin. Following the successful drilling at the Maverick 1V and A2H wells during 2022, the A2H stimulation program is aiming to demonstrate economic flow rates from the Mid-Velkerri “B Shale” in our Beetaloo Basin acreage and the commercial viability of the play.

“The A2H program will leverage a proven US stimulation design. After completing the stimulation, we expect a four-week flow back of stimulation fluid before installation of production tubing. We expect to announce the 30-day initial production rates early in the second quarter of calendar year 2023.

“The Beetaloo Basin is well positioned to address the gas shortfalls on Australia’s East Coast, as forecast by the Australian Competition and Consumer Commission (ACCC) and Australian Energy Market Operator (AEMO). The Beetaloo has the potential to aid Australia's energy transition and reduce emissions by utilising its world-class low reservoir CO2 gas to offset the higher CO2 fields on the East Coast, including declining Cooper Basin and offshore Victoria fields".

A report published today by Australia’s national science agency, CSIRO, provides an assessment of options to mitigate and offset greenhouse gas (GHG) emissions associated with potential production and Australian consumption of gas extracted from the Northern Territory’s Beetaloo Sub-basin.

The research addresses a recommendation of the 2018 Scientific Inquiry into Hydraulic Fracturing in the Northern Territory, chaired by the Honorable Justice Pepper. Recommendation 9.8 was seeking to understand potential greenhouse gas emissions as a result from any onshore gas produced in the NT in order “That the NT and Australian governments seek to ensure that there is no net increase in the life cycle GHG emissions emitted in Australia from any onshore shale gas produced in the NT”.

The research was undertaken by CSIRO as part of GISERA, an alliance led by CSIRO which is a collaboration between CSIRO, commonwealth, state and territory governments and industry.

GISERA’s purpose is to work with the community to undertake research about the potential or actual impacts of gas development, across major environmental and socio-economic topics. The type of research projects GISERA delivers is decided by committees in each geographical region, with the community voice in each committee always carrying the greatest weight. All research is publicly reported and peer reviewed.

The Beetaloo Sub-basin is situated southeast of Katherine in the Northern Territory and spans approximately 30,000 square kilometres.  It has been identified as a potential area for gas production, with estimated resources of similar size to other major gas producing basins in Australia, such as the Surat Basin in Queensland and the Bonaparte/Browse basins in Western Australia. 

Research methodology and findings 

• As there is currently no gas production in the Beetaloo Sub-basin, CSIRO researchers used a set of production scenarios spanning 2025-2050 to calculate the estimated annual and lifetime emissions. Researchers then assessed options for mitigating or offsetting the emissions estimated in these scenarios.

• The report was directed to provide technical analysis to estimate emissions and assess mitigation options only, and does not consider other social, environmental and policy factors.

• Four scenarios considered production of 365 PJ/year and one scenario of 1,130 PJ/year, with a variety of end use cases for the shale gas. The estimated annual emissions associated with these scenarios range from 6.6 million tonnes (Mt) to 33 Mt CO2e/year. For comparison, Australia’s actual GHG emissions in the 12 months to March 2022 were 487.1 Mt CO2e. 

• Total lifetime emissions (25 years) to be abated under these scenarios ranged from 164 Mt to 826 Mt CO2e. 

• In terms of emissions intensity, gas delivered to Darwin was estimated at 8.85 kilograms of C02e per gigajoule (GJ) of raw gas input. 

• Currently more than 7 Mt CO2e/year of mitigation and offsets could be available within the Northern Territory, including mitigation activities during production, potential carbon capture and storage based out of Darwin, savannah fire management and other land-based offsets. 

• A further 79 to 156 Mt CO2e/year of abatement or offsets is available outside the NT but within Australia, of which this study assumes ten per cent (7.9 to 15.6 Mt/year) would be available for Beetaloo gas development. 

• All scenarios assumed that the source of onshore shale gas would be the Beetaloo Sub-basin and that extracted gas would be processed before being transported by pipeline to Darwin for further processing and use.

• The mix of mitigation or offset options assessed for each scenario depended on scale, availability over the lifetime of the gas development, technical feasibility, indicative cost, and a priority for local, well-governed schemes. They included mitigation activities during production, potential carbon capture and storage based out of Darwin, savannah fire management and other land-based offsets.

• It showed that for the lower impact scenarios (365 PJ/year production) the majority of GHG emissions could be mitigated or offset with options available in Australia. The higher impact scenario (1,130 PJ/year production) would require international offsets in addition to mitigation and offsets within Australia.  

• These estimates of abatement/offset potential are based on data in the latest CSIRO research Assessing Australia's Carbon Sequestration Potential provided to the Climate Change Authority. 

GISERA Director Dr Damian Barrett said this research responds to community concerns about GHG emissions and provides valuable information to inform discussion around managing impacts of potential onshore gas resource development.

“This report provides a precise technical analysis of the greenhouse gas emissions associated with onshore gas production scenarios, and important information about mitigation and offset options within the Northern Territory and elsewhere in Australia,” Dr Barrett said.

About the report 

The research program was conducted through the CSIRO’s Gas Industry Social and Environmental Research Alliance (GISERA) to inform discussions around proposed onshore gas development in the region.

It addresses recommendation 9.8 of the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory 2018: "That the NT and Australian governments seek to ensure that there is no net increase in the life cycle GHG emissions emitted in Australia from any onshore shale gas produced in the NT”.

This research was funded by the CSIRO (25 per cent), Commonwealth (68 per cent) and Northern Territory (4 per cent) governments, and industry (3%). It was approved by GISERA’s NT Research Advisory Committee in July 2020 in response to community concerns about GHG emissions from onshore gas development. 

This study forms part of a suite of other research activities conducted through CSIRO’s GISERA in the Northern Territory, which include research into groundwater, biodiversity, stygofaunal communities, background seismicity, microbial degradation of chemicals, methane emissions from drilling, transport impacts and decommissioning.

More information

GISERA is a national collaboration between commonwealth, state and territory governments, CSIRO and industry, established to undertake independent research in the public interest around the social and environmental impacts of the onshore gas industry.

All research results, reports, meeting minutes and factsheets are publicly available on the GISERA website.

CSIRO's GISERA web site project page

Read the final report

Download the fact sheet

Australia’s oil and gas industry has urged the Federal Government to use the 2023-24 Budget to encourage investment in new gas supply and emissions reduction measures to put sustained downward pressure on gas prices, help deliver energy security, and fast-track the path to net zero.

The Australian Petroleum Production & Exploration Association (APPEA) said the sector had never been more important to the nation’s economic and cleaner energy future, and ensuring a dependable investment environment would deliver more benefits to Australians.

APPEA’s 2023-24 Federal Budget submission, released today, calls for a national carbon capture utilisation and storage (CCUS) roadmap to provide clear policy direction, identify and progress priority hubs for low emissions projects and promote Australia as a regional carbon storage leader.

APPEA Chief Executive Samantha McCulloch said: “Capturing and permanently storing emissions from industrial facilities, including hydrogen production, and directly from the atmosphere makes the most of our world class geological resources and is critical to reaching net zero.”

APPEA also calls on the government to encourage investment in new gas supply to meet demand and drive down prices, rather than interventionist policies which have the opposite effect.

Key measures include – letting the market work to bring down prices; progressing new acreage releases; encouraging New South Wales and Victoria to lift moratoriums which are contributing to the highest gas prices in the country; and giving major project status to new supply and low emissions technology projects.

Ms McCulloch said: “Australia’s natural gas is essential to ensuring a future energy system that is secure, reliable, affordable and central to reaching net zero.

“The significant contribution from the sector underpins state and federal investment in roads, schools and hospitals, allowed Australia to weather the economic downturn and will play a role in our economic success for decades to come.

“But the value of our energy resources and their contribution to the economy, jobs and net zero cannot be taken for granted and clear and stable policies are essential to provide industry with confidence to invest in the new energy supplies needed.

“The recent government price cap intervention – combined with the proposed Mandatory Code of Conduct – lets the government permanently determine gas prices.

“This – along with ongoing legal hurdles and delays for new oil and gas projects – create significant uncertainty and make investors nervous to allocate new capital to the sector and the economy.

“The government should take note of the lessons from the price cap implementation when considering permanent regulation of gas prices through a mandatory Code of Conduct. It would send a positive signal to investors to recommit to an open, market-based economy.”

APPEA is also calling for the government to keep the scope of the proposed Environmental Protection Agency consistent with its pre-election commitments, while removing existing duplication under the Environment Protection and Biodiversity Conservation Act, avoiding new duplication, and streamlining approvals.

Ms McCulloch said: “We want to improve environmental standards and build business certainty, avoiding added costs to project approvals and delays at a time when new supply is so important.”

The full suite of APPEA recommendations to be considered for the 2023-24 Federal Budget include:

Accelerating the pathway to net zero

Develop a national CCUS roadmap to:

• Provide clear CCUS policy direction and consistent regulatory frameworks. Support collaboration to ensure CCUS and carbon removal technologies are available across the economy.
• Identify and advance priority hubs for CCUS, low-carbon hydrogen and hard-to-abate industry.
• Demonstrate that Australia is “open for business” as a regional CO2 storage focal point.

Enabling investment for a secure, affordable energy future

• Let the market work to unlock new gas supply and drive down Australia’s energy prices.
• Support new oil and gas development through acreage releases, and encourage states to lift moratoriums on new exploration and development.
• Assign major project status for new energy supply and low emissions technology projects.
• Ensure a modern and competitive fiscal system that removes regulatory and investment barriers to efficient market operation.

Protecting and preserving Australia’s environment

• Remove existing duplication, avoid new duplication, and streamline EPBC Act approvals.
• Limit the scope of the independent Environmental Protection Agency consistent with the government’s pre-election commitment.
• Finalise the decommissioning legislative reform and financial assurance framework.

View the APPEA 2023-24 Federal Budget Submission here.

To view this media release as a PDF, please click here.

Entries are now open for the 2023 In.Site Photographic Awards. Now in its fourth year, In.Site is a great opportunity for employees of the natural gas industry to showcase their photographic flair.

The 2023 In.Site Photographic Awards celebrate the beautiful towns, cities and landscapes of Australia’s natural gas sector, highlighting the relationship between the industry and the communities and environments in which it works.

To further celebrate the industry’s connection to community, as part of the competition, APPEA will make a charitable donation to an organisation which is vital in the areas in which our industry operates.                                                   

Here’s an overview of the prizes on offer:

Overall Winner

• $5,000 voucher from Ted’s Cameras
• Complimentary attendance to the 2023 APPEA Conference from Monday 15 to Thursday 18 May 2023
• Professionally framed print of your winning photograph
• Winner’s certificate
• Your profile promoted on our Brighter channels

Category Winners (‘Environment’, ‘Community’, ‘People’)

Respective winners of the Environment, Community and People categories will receive the following:

• $1,000 voucher from Ted’s Cameras
• Complimentary attendance to the 2023 APPEA Conference from Monday 15 to Thursday 18 May 2023
• Professionally framed print of your winning photograph
• Winner’s certificate
• Your profile promoted on our Brighter channels

All competition winners’ photos will also be immortalised through use on APPEA’s digital and print publications.                                                                 

So, how does the competition work? Send us your pictures in one of three categories — Environment, Community, and People — and you could be in to win some great prizes.

Don’t worry if you feel like you’re a beginner — whether you’re rocking a Huawei or a Hasselblad, all skill levels are encouraged to apply. To further celebrate the industry’s connection to community, as part of the competition, APPEA will make a charitable donation to an organisation which is vital in the areas in which our industry operates.

Here’s a brief explanation of the categories:

Environment showcases the natural world in which the industry operates, from deserts to oceans and everything in between – this is the category if you want to send us your most stunning landscapes.

Community highlights the towns and communities that enable the natural gas industry to operate; it could be a local bakery, a favourite park, transport vehicles delivering machinery etc.

People does what it says on the tin – this category reflects the spirit of the people around us, whether it’s a treasured colleague, new graduate employee, or member of the local community like a teacher or butcher.

The Overall Winner is the person whose photo the judges feel best captures the spirit of their workplace, local community or environment, and will be chosen from all entries across all categories.

Entries close on Friday 14 April and the winners will be announced on Friday 21 April.

For more info, click here

SUBMIT YOUR ENTRY NOW

Top End Energy Limited (Top End or the Company) (ASX:TEE) is pleased to announce that it has been successful in its application for Area L22-6 in the highly prospective Amadeus Basin.

HIGHLIGHTS

• The Company has secured a 100% interest in Area L22-6, a 6,300km2 area containing the untested and historically overlooked basin margin extension to the proven Amadeus Basin in the Northern Territory

• Immediately adjacent to the Company’s existing Northern Territory Amadeus Basin portfolio, leveraging existing knowledge and providing technical and operational synergies

• Multiple play fairways have been identified across the permit for conventional Hydrocarbons, Helium and Hydrogen, all of which have been discovered in the basin

• Committed and phased work program tailored to maturing multiple focus areas using modern technology 

For full ASX Announcement, click here