Industry News

The Territory Labor Government has released the Mineral Development Taskforce Final Report, stepping out how the Northern Territory can accelerate mining development to unlock a pipeline of projects, a key part of achieving a $40 billion economy by 2030.

The Mineral Development Taskforce was established in November 2021 to investigate and identify strategies to activate and secure ongoing private investment.

The taskforce, which comprises of government, industry and private sector experts was tasked with reporting findings back to the Northern Territory Government.

Released today, the taskforce’s final report, outlines a series of recommendations and actions to drive and increase private investment in mining and downstream value-add projects.

These include:

• introducing targeted initiatives to encourage increased exploration and mining activity

• securing co-ordinated, transparent and efficient land access processes that respect land-owners and recognise co-existing uses

• targeted regulations focussed on outcomes to deliver improved project economics

• updating the Territory’s royalties regime to make it more competitive and not a deterrent to investment

• capitalising on economically sustainable downstream mineral value-add opportunities.

Government accepts the recommendations in principle and will now engage with key stakeholders and industry about the opportunities that have been identified to increase and enhance the competitiveness of the Territory as an investment destination.

The report can be found at https://resourcingtheterritory.nt.gov.au/minerals/mineral-development-taskforce

Quotes attributable to Minister for Mining and Industry, Nicole Manison:

“The Mining industry is the Northern Territory’s biggest contributor to the economy, and we can help tackle climate change by supplying the critical minerals the world needs.

The Territory Government is sending a loud and clear message to investors that we are a world class destination for mining and we have the resources need for low emission technologies.

Growing mining will mean more well-paying jobs and royalties that will benefit all Territorians, through better services and infrastructure

This is why we established the Mineral Development Taskforce, which has identified opportunities to harness sustainable downstream manufacturing, and different royalty models that could make the Territory more competitive on a global scale.”

Source: NT Government Newsroom

Integrated engineering firm Fyfe has been awarded an engineering, procurement and construction contract for Santos’ Bayu Undan carbon capture and storage project in the Timor Sea.

The Bayu-Undan gas field will store up to 10 million tonnes of carbon dioxide per annum and will be needed to take CO2 from Santos' future Barossa project, whose fields average 12% CO2.

The project will require additions and modifications to the DLNG facility, which is proposed as the foundation for a CO2 processing hub, as well as the repurposing of the Bayu-Undan to Darwin Gas Export Pipeline, the offshore processing facility and facility wells for re-injection of processed CO2.

Fyfe was awarded the contract for brownfield construction and detailed design of tie-in of the onshore Darwin LNG project. The contract value was not made public.

The engineering company will consider the main process, utilities, and CO2 export piping.

This includes pipeline design through or near the existing infrastructure.

Fyfe will also undertake onsite surveying and civil design of footings at Darwin LNG as part of the early works process.

Bayu-Undan will initially take CO2 from the Darwin LNG plant as Barossa replaces the field as backfill.

Santos has previously said the reservoir has the potential for future expansion to proximal third parties.

Separate to the EPC contract to Fyfe, Santos' next contract for procurement of long lead valves closes this week.

Santos is seeking expressions of interest from companies who can supply manual ball vales, flanged up to DN600 in size and 15000# pressure rating.

It also requires steel manual triple offset butterfly valves and actuated ball valves and pressure safety valves.

Source: Energy News Bulletin

Tivan signs Letter of Intent with renewable energy company Sun Cable for potential power supply to the TIVAN Processing Facility in Darwin

Highlights

• Tivan has signed a Letter of Intent with AAPowerlink Australia Assets Pty Ltd, a Sun Cable renewable energy group company, to support its planned TIVAN® Processing Facility in the Middle Arm Sustainable Development Precinct in Darwin.

• Sun Cable is developing one of the largest solar generation, storage and transmission projects in the world in the Northern Territory.

• Tivan and Sun Cable are progressing discussions on energy supply to the Company’s planned TIVAN® Processing Facility in the Middle Arm Sustainable Development Precinct in Darwin.

• The synergistic relationship with Sun Cable supports Tivan’s strategic vision to play a facilitatory role in supporting the renewable energy transition in the Northern Territory

For full ASX Announcement, click here.

Source: https://tivan.com.au/ 

Top End Energy Limited (Top End or the Company) (ASX:TEE) is pleased to announce that it has received written notification from the Northern Land Council (NLC) that the native title holders of Exploration Permit (EP) 258 (the Permit) have provided instructions to enter into an exploration agreement with the Company1. This is the critical path item required for the formal grant of the Permit.

HIGHLIGHTS

• Native title holders of Greater McArthur Basin EP 258 have agreed to enter into an exploration agreement with the Company following third on country meeting

• Critical milestone reached, unlocking path for near-term grant of EP 258 which would represent the first EP to be granted in the NT since 2015

• Post-grant exploration program designed to confirm the extension of the Velkerri Shale, the target for operators in the nearby highly prospective Beetaloo Basin, and presence of the conventional Bessie Sandstone formation on the Permit 

• AGG survey to commence post-grant to provide high resolution gravity gradient datasets to aid structural interpretation and optimise acquisition parameters and location of planned 2D seismic survey

• Operators in the Beetaloo Basin remain very active with ongoing drilling campaigns targeting near-term pilot projects

To view full ASX Announcement, click here

Brookfield and EIG Consortium have signed a binding agreement to acquire Origin Energy at the end of March.

A consortium comprised of Brookfield Renewable Partners, together with its institutional partners and global institutional investors GIC, and Brookfield, and MidOcean Energy,  has entered into a scheme implementation deed with Origin Energy.

Origin is Australia’s largest integrated power generator and energy retailer with a 24 per cent market share of the national electricity market and owner of a 27.5 per cent stake in Australia Pacific LNG Project.

“As the energy transition gathers pace, what’s needed is increasingly clear: faster deployment of large-scale renewables, the accelerated, responsible retirement of coal generation, and an interim, supportive role for gas as the dependable back-up fuel. Brookfield is determined that the new Origin Energy Markets will lead the way in all respects at this critical moment for the Australian economy,” said chair and Brookfield asset management and head of transition investing Mark Carney.

Brookfield, its institutional partners and investors GIC and Temasek will acquire Origin’s Energy Markets business, with Brookfield intending to significantly reduce Origin’s carbon emissions and invest at least $20 billion in new build renewables and storage.

The scheme values Origin at an enterprise value of $18.7 billion1. The purchase price of $8.91 per share represents a 53.4 per cent premium to the company’s unaffected share price.

This landmark transaction aims to accelerate decarbonisation of the energy grid and help Australia progress towards its net zero goals.

“The acquisition of Origin Energy presents Brookfield with a unique opportunity to invest at least $20 billion and make a material difference to achieving Australia’s net zero targets,” said Brookfield Asia Pacific chief executive officer Stewart Upson.

“We will build on the success of our global renewable power and transition business where we have a mandate to ‘go where the emissions are’ in putting billions of dollars behind an executable plan to reduce emissions at Origin.

“Brookfield has the capital, expertise, supply chain strength and global track record that’s needed to transform Origin’s generation fleet to greener sources and accelerate Australia’s energy transition while ensuring network security and reliability.”

Brookfield and EIG view Origin as critical to Australia’s energy transition and energy security. Both parties intend to use the acquisition to create separate platforms that will assist Australia’s transition to a net zero future.

Brookfield intends to accelerate the development of renewable generation capacity for Origin Energy Markets, which is expected to make a material difference to achieving Australia’s net zero targets at this crucial time in its energy transition.

The Origin board has stated that it is unanimously recommending that Origin shareholders vote in favour of the scheme in the absence of a superior proposal, and subject to an independent expert concluding the Scheme is in the best interests of shareholders.

Upon closing of the transaction, Brookfield, its institutional partners and investors will own Origin’s Energy Markets business, Australia’s largest integrated power generator and energy retailer.

“We’re thrilled to join forces with Brookfield and Origin in this transaction and to further expand our footprint in Australia,” said MidOcean Energy chief executive officer De la Rey Venter.

“Origin’s Integrated Gas business adds world-class assets to our portfolio – assets that fit our strategy to create a high quality, diversified, global ‘pure play’ integrated LNG company.

“We look forward to working with all stakeholders to help facilitate Australia’s energy transition, to bring stable and affordable gas supply to the domestic market and to provide a reliable supply of LNG to the region for decades to come.”

Source: Energy Today

Material Increase in Carpenteria-2H IP30 Flow Rate

Highlights

• Carpentaria-2H (“C-2H”) has achieved a new average flow rate over 30 days (“IP30”) of 2.81 mmscf per day, equating to a normalized flow rate of over 3 mmscf per day per 1,000m of horizontal section. This represents an increase of approximately 17% over the initial IP30 rates announced in September 2022 despite partial reservoir depletion following the initial 51-day flow testing program. The current flow rate is 2.3 mmscf per day.

• This excellent result, achieved with a highly experimental and therefore unoptimized stimulation design, validates the soaking strategy that Empire has employed and will be incorporated into Empire’s development planning process which is well underway.

• North American reservoir engineering firm Subsurface Dynamics, Inc. (“SSD”) has analysed the flow testing performance of C-2H. SSD’s analysis indicates that development wells with 3km laterals in the C-2H area could generate total estimated ultimate recovery (“EUR”) of 6.2 BCF gas per well on a P50 basis and 8.1 BCF gas on a P10 basis. Most of this gas would be produced in the first 3 – 5 years, consistent with US shale basins, which would drive rapid recovery of invested capital.

• Based on Empire’s existing drilling and stimulation cost performance, the operations team estimates that development wells with 3km lateral sections and 60 fracture stimulation stages in the pilot phase can be drilled, fracture stimulated and completed for production for approximately $20 million per well (and likely below $15 million per well in larger scale development scenarios given the economies of scale that would be generated).

• This indicates that Empire could achieve upstream development costs of approximately A$2.00 to A$3.00 per mscf in future development scenarios. 

• Flow testing is ongoing, and Empire’s management, subsurface and operations teams are progressing the work required to take a proposal to the Board for a Final Investment Decision for the pilot project later this year (“Pilot FID”). 

• Current cash balance is $15.7 million with approximately $3.5 million remaining to be paid in relation to the 2022 drilling and stimulation programs. The $15 million credit facility is available but undrawn providing further liquidity. The final Beetaloo Cooperative Drilling Program progress payment of ~$7.6m is expected to be received soon. This leaves Empire well capitalized to carry out the preparatory work for the Pilot FID. 

To view full ASX Announcement, click here

Today, Australia is one step closer to achieving net zero by 2050, with confirmation the Albanese Government has secured additional Parliamentary support for the Safeguard Mechanism reforms.

These landmark reforms will reduce 205 million tonnes of greenhouse gas emissions to 2030 – equivalent to taking two-thirds of the nation’s cars off the road over the same period.

These are overdue, sensible reforms which ensure Australia’s largest emitters are competitive in a decarbonising global economy and make a fair contribution towards the nation’s emissions reductions task.

They complement the over $24 billion investment the Albanese Labor Government is already making in cleaner, cheaper energy, and emissions reduction.

The Safeguard Mechanism was put in place by the previous Coalition Government. It requires facilities that produce over 100,000 tonnes of greenhouse gases annually (around 215 facilities) to keep their net emissions below a baseline (or ceiling). However, under the former Government’s settings, scheme emissions actually increased by four per cent.

Extensive industry and public consultation and constructive discussions with the Australian Greens and crossbench have delivered a strengthened design that bolsters the scheme for the economy and the climate.

The changes to the scheme are in keeping with the policy’s intent – ensuring that both flexibility and support are provided for industry to remain competitive, and that the scheme delivers accountability, transparency and integrity.

Minister for Climate Change and Energy, Chris Bowen, said the finalisation of the Safeguard Mechanism Bill was a key milestone in achieving Australia’s 43% emissions reduction target by 2030.

“Today, we are a step closer to achieving net zero by 2050,” Minister Bowen said.

“We thank those across the Parliament who continue to approach this legislation in a constructive way to ensure accountability, transparency and integrity for the scheme, and ensure flexibility and support for industry. We will continue to work with people of good faith across the Parliament to secure passage.

“These reforms are the culmination of months of extensive feedback from Safeguard businesses, industry associations, climate and community groups, academics and private individuals.

“Business and climate groups have been clear that the Parliament should pass the strengthened legislation in front of it and deliver overdue policy certainty – but Peter Dutton would prefer to drag Australia backwards and continue the climate wars.

“These reforms are crucial to our climate and our economy – supporting Australian industry and ensuring they will continue to be competitive in a decarbonising world.”

These changes build on previously confirmed design features of the Safeguard Mechanism – including the creation of Safeguard Mechanism Credits which will enable large industrial facilities to earn credits when they reduce their emissions below their baselines.

The Government will finalise detailed Safeguard Rules next month. The updated Safeguard Mechanism scheme will be in operation as of 1 July 2023.

ENDS

Attachment 1 - Key improvements to the reforms
 
Providing flexibility and additional support for industry

1.       Targeted funding: At least $1 billion in funding for the manufacturing sector and trade-exposed industries through the Powering the Regions Fund, including:
a.       A targeted $400m for industries providing critical inputs to clean energy industries (incl. steel, cement/lime, aluminium/alumina), in addition to both the $600m Safeguard Transformation Stream, and other funding pools (NRF, CEFC, ARENA)
b.      This funding will be focussed on decarbonisation, rather than expansion of fossil fuels

2.       Specific treatment for hard-to-abate, value-added manufacturing including:
a.       Inclusion of a different threshold for manufacturers to qualify for a discount on their decline rate, which reflects the particular characteristics of this sector as a value-adding industry.
b.      Reduce the minimum annual baseline decline rate for manufacturers that meet the new threshold to 1 per cent.

3.       Address risks of carbon leakage
a.       The Government will commission a review to examine the feasibility of an Australian carbon border adjustment mechanism (CBAM). The review will give particular consideration to a CBAM for the steel and cement sectors (including clinker and lime production).
 
Ensuring accountability, transparency, and integrity
1.       Accountability – making sure that the policy intent – driving down emissions over time, is met through:
a.       Ensuring the scheme delivers a proportional share of the national 2030 target (205 million tonnes by 2030). Updates to the National Greenhouse and Energy Reporting Act 2007 (NGER Act) will clarify that:
i.      the policy intent is for aggregate emissions to go down over time –through measurement of a rolling average, and
ii.      to not exceed the conservatively estimated 1,233 million tonnes of CO2-e to 2030, or 100 million tonnes in 2030.

b.       New facilities will have their baseline set at international best practice, adapted for the Australian context
                                         i.      As proposed in the original design, new entrants will need to meet international best practice to ensure emissions decline over time, and manufacturers in particular are not disadvantaged from additional carbon constraints caused by new entrants.

-          New gas fields supplying existing liquefied natural gas facilities will be treated as new facilities so that they are given international best practice baselines for the carbon dioxide in their new fields. For these fields’ reservoir CO2 emissions, best practice is zero given the existence of low-CO2 fields and opportunities for carbon capture and storage.

-          Beetaloo - In relation to the Beetaloo basin, all new gas entrants in the basin will be required to have net zero scope 1 emissions from entry, consistent with the then-Commonwealth Government’s April 2022 commitment to “work with the [Northern] Territory to support its implementation of recommendation 9.8 of the [Hydraulic Fracturing Inquiry] using available technology and policies”.

c.       The Government is already obligated to report on progress against climate reforms, however we will strengthen transparency and accountability by ensuring the following in full:
i.      As part of the Annual Climate Change Statement, the Climate Change Authority (CCA) must report on progress against emissions reduction goals, with specific reference to new entrants and expansions in the preceding and following year.
ii.      In response to the Samuel Review, the Government has committed to “require reporting of Scope 1 and 2 emissions and related management actions over the life of the project”. EPBC approvals of new projects that are expected to enter the Safeguard Mechanism will cause an assessment by the Government of that project’s reported emissions against the Objects above.
iii.      The Minister would need to act where the Secretary of the Department, based upon emissions information including from the Clean Energy Regulator and EPBC approvals, considers changes to the Rules may be needed to meet the Objects.

2. If any of these tests find that Safeguard emissions have or will breach the Objects, and that this is not due to temporary factors, the Bill will require the Minister to consult and amend the Rules, or take other policy actions to ensure the Objects are met.

3.       Transparency – ensuring information relevant to the scheme is made available to the Minister and the public
a.       While no limits will be placed on ACCU use to ensure flexibility for industry, where companies are using over 30% offsets to meet their requirements, they’ll explain to the regulator their choice for doing that (e.g., cost, technology availability etc.)
b.       Improve methane reporting
i.      Require methane and nitrous oxide emissions to be publicly reported
                                      ii.      Ask the CCA review to include a look at updating methane measurement, verification and reporting and implement any improvements by 1 July 2024 where practicable.

4.       Integrity – making sure emissions reduction under the scheme is real
a.       Chubb Review implementation - continue with implementation of the Chubb Review to ensure integrity in the carbon market. Consistent with recommendation 8, ensure that new HIR method projects can only be credited when they comply with the entirety of recommendation 8.

The Hon Chris Bowen MP

Minister for Climate Change and Energy

Tamboran Resources:  Successful completion of 25-stage stimulation program at Amungee 2H

Highlights

• Tamboran has successfully completed the 25-stage stimulation program at the Amungee 2H (A2H) well in the 38.75 per cent owned and operated EP 98 permit of the Beetaloo Basin.

• A total of 25 stages were successfully stimulated across a 1,020-metre horizontal section within the Mid-Velkerri “B Shale”. Approximately 2,125 pound per foot of proppant was placed along the completed horizontal section, an increase of ~55% compared to the Tanumbirini 2H (T2H) and 3H (T3H) wells in the Santos-operated EP 161 permit (Tamboran 25 per cent, non-operator).

• The proppant was placed using 5-½-inch casing and based on modern US shale design. This design has leveraged off the experience of the Company’s US technical team and incorporated learnings from the drilling and stimulation of the T2H and T3H wells. The modern design is expected to result in improved flow rates from the extended production test during 2023.

• The total expenditure for the A2H well to date is ~$32 million, including drilling and stimulation. This is within 5 per cent of budget estimate after additional scope to the well was undertaken by Tamboran post-acquisition.

• The flowback of stimulation fluid is planned to commence imminently and is expected to take several weeks before the well is shut-in for installation of production tubing.

• Tamboran expects to announce 30-day initial production (IP30) flow rates during the second quarter of 2023.

Tamboran Resources Limited Managing Director and CEO, Joel Riddle, said:

“The completion of the program at A2H is a significant milestone for Tamboran in the Beetaloo Basin, being the first well to be completed using the optimal 5-½-inch casing within the Mid-Velkerri ‘B Shale’. I commend the Tamboran team and our contractors for the safe and successful completion of the program, which was achieved in the middle of the Northern Territory’s wet season.

“The team delivered a significant increase in sand into the shale formation, when compared to the T2H and T3H wells in the non-operated EP 161 permit. We expect this will further demonstrate economic flow rates and commercial viability of the play.

“The A2H well will shortly begin to flow back stimulation fluid before being shut-in for installation of production tubing. This is expected to deliver optimal flow rates during the extended production testing, which will provide key data regarding decline curves and estimated ultimate recovery.”

Tamboran’s Chief Operating Officer, Faron Thibodeaux, said:

“I am extremely proud of our team being able to deliver a project of this magnitude, despite taking on operatorship of the well days before spudding and bringing forward the stimulation program by more than three months. Our team and contractors worked together seamlessly, including the technical team in the US and new employees following the acquisition, to complete this milestone.”

To view the full ASX announcement, click here

Animated videos combining the Aboriginal story of water with how water is managed by the Northern Territory Government were launched in Katherine today.

The videos, produced by Mystic Media as part of a collaboration between the Department of Environment, Parks and Water Security (DEPWS) and Yandamah Indigenous Corporation, tell the story of water and how this vital resource is managed in the Territory.

DEPWS Water Resources executive director, Amy Dysart, said the videos explain the Department’s role in managing water and how community members can have a say in the process.

“Water plays a vital role in supporting life, lifestyles and livelihoods,” Ms Dysart said.

“World Water Day is an opportunity to change how we tell the story of how the government manages water and we hope these videos help us achieve this aim.

“Our partners have reflected how important and vital water is for the social and economic future of the communities in the Territory.

“Today’s launch marks the culmination of an effort bringing together the illustrations of renowned Aboriginal Australian artists, with the voice of multi-talented artist Kamahi Djordon King, a Gurindji man born in Katherine.

“It tells the story of how water is managed in the Territory, and what rights local community members have to be involved in the process, and how to have a say.

“The visual and voiceover artists represent communities including Lajamanu, Willowra, Nyrippi and Yuendumu, Mount Allan (Yuelamu) and Alice Springs (Mparntwe).

“It was exciting to come together today in Katherine, to catch up with each other, see the final videos, and celebrate what can be achieved when we work together."

To view the English version of the video go to https://www.facebook.com/EnvironmentNT

To learn more about water management, visit: depws.nt.gov.au/water

ENDS. 

Source: NT Government newsroom

Department of Environment, Parks and Water Security

DEPWS Media Manager 0476844832

The Northern Territory’s four key industries have strong growth potential and could even help the Territory’s economy exceed a $40 billion dollar economy by 2030-31.

A new report by Deloitte Access Economics, commissioned by the Northern Territory Government, measures the current value of the maritime, agribusiness, minerals, and oil and gas industries.

It found these 4 industries contribute $7 billion in direct value, and support over 11,000 jobs in the Territory.

This contribution is equivalent to 26 per cent of the Territory’s Gross State Product and 8 per cent of total employment.

Importantly, there are sizable growth opportunities for the Territory’s maritime, agribusiness, minerals and oil and gas industries over the next decade.

The minerals industry will be boosted by production from the new Finniss Lithium Project.

The maritime industry is poised to benefit from broader economic growth and the demand for trade.

While the agribusiness industry will continue benefiting from general population growth in Australia and the demand for food.

There are 22 priority actions identified to maximise industry growth over the period of 2030-31, which include:

* Capitalising on the increases in demand for critical minerals by increasing exploration and production activities

* Extending the value chain to deliver economic growth and more jobs to the Territory by using local gas production to develop gas-based processing and manufacturing sector

* Establishing Darwin as a key maintenance hub for vessels operating in the Indo-Pacific region with purpose built berths

* Improving productivity for the cattle industry by adopting new technology and improving sustainable management practices for land assets.

The report also identifies pathways for government to help industry overcome barriers to growth which include skill shortages, access to land and water, lack of regional connectivity, market maturity, climate change and red tape.

Work is underway with industry to work together on suggested actions and pathways in order to maximise growth over the period to 2030-31.

The Territory Economic Reconstruction Commission set the task of achieving a $40 billion economy, and in its Final Report identified maritime, agribusiness, minerals and oil and gas industries having the greatest growth opportunities for the Territory.

Read the report here: https://industry.nt.gov.au/economic-valuation

Quotes attributable to Minister for Mining and Industry, Nicole Manison:

“Growing a $40 billion economy by 2030 requires reaching for bold new economic opportunities and overcoming long standing challenges facing the Northern Territory.

The Northern Territory has what it takes to be a thriving economy with world class mineral deposits, prospective gas reserves, a strong agriculture sector, emerging information technology capabilities and strategic advantages as a location for trade and defence.

The Territory Labor Government is committed to achieving a more diverse and sustainable economy, which will mean well-paying jobs and better outcomes for all Territorians.”

Quotes attributable to Deloitte Access Economics partner, and principal report author, John O’Mahony:

“Approximately half of the estimated growth in the NT economy could be contributed through sectoral spillovers—efficiency gains in the upstream and downstream industries dependent upon the maritime, agribusiness, minerals and oil and gas industries.

The Northern Territory  Government has an opportunity to deliver sustainable growth—and spread resulting social benefits more widely—by maximising the downstream manufacturing and services opportunities from growing maritime, agribusiness, minerals and oil and gas services.”

Quotes attributable to Gaurav Sareen, Lead Partner, NT Government and Public Sector:

“This report can facilitate discussions between industry and the NT Government to identify potential opportunities and options to overcome barriers to growth across a number of key sectors that are important to the Territory’s economy, and   support the government’s goal of a $40 billion economy by 2030.”

Source: NT Government newsroom