Industry News

NEXTDC Limited (ASX: NXT), Australia’s leading data centre services provider, and the Northern Territory Government have shared detailed plans surrounding the development of NEXTDC’s new world-class data centre in Darwin (D1) which will underpin the digital territory strategy.

NEXTDC is working in partnership with the Northern Territory Government to drive the economic development of its technology capabilities in the region.

Located at 2 Harvey Street in Darwin’s central business district, the D1 site is strategically positioned next to a major electricity substation as well as critical telecommunications, utilities, public infrastructure and the Charles Darwin University Campus. Subject to development approval, it is expected to accommodate a data centre facility capable of approximately 8MW of capacity.

This new world class facility will also include an Innovation Centre; a purpose-built collaboration hub that will promote research, development and new incubator programs, as well as Mission Critical Operations space (MCX). This will enable customers to operate and monitor their high availability and business critical services, such as mine sites, disaster management centres, network operations, satellite operations, security operations and remote operations centres.

Championing NEXTDC’s core principles for quality and reliability, D1 will enable secure, lower latency access to cloud and digital services, allowing Northern Territory businesses to harness the benefits of cloud enabled services and emerging technologies such as automation, IoT, artificial intelligence, satellite and 5G.

Additionally, NT businesses that move their IT operations to D1 will gain access to the country's largest digital ecosystem comprising the world's largest cloud platforms including AWS, Google Cloud, Microsoft, IBM Cloud, Oracle Cloud and Alibaba, along with the nation’s carrier networks and service provider partners via the AXON interconnection platform.

Vocus, the facility’s anchor tenant, will host its new services and associated infrastructure in the D1 facility. Vocus will also provide high-capacity connectivity to D1 on its Terabit Territory fibre network.

D1 is primed to enter one of Australia’s most innovative renewable energy markets joining the Northern Territory Government’s commitment to 50% renewable energy by 2030 and Sun Cables 3.2GW dispatchable solar power sub-sea cable terminating in Darwin.

“NEXTDC’s commitment to supporting the Northern Territory’s goal of becoming a key destination for digital growth extends beyond our initial D1 development,” said NEXTDC Chief Executive Officer, Craig Scroggie. “We have also secured the rights for an additional and significant land parcel for our second Darwin site (D2). This site is in excess of 15 hectares and will provide additional capacity for the long-term development of a hyperscale campus designed to serve the emerging Asia South region connected to Darwin by new international submarine cable networks.”

NEXTDC is working in partnership with the NT Government and the Land Development Corporation to further plan this large-scale data centre and renewable energy expansion project.

“This investment will help us diversify and strengthen the Territory economy,” said NT Chief Minister Michael Gunner. “Not only will it create jobs for Territory tradies during construction, but the innovation centre will spur the growth of tech businesses here in the Territory and create digital careers for locals.

NEXTDC’s investment cements Darwin as Northern Australia’s most advanced digital economy, and this will open the door to new opportunities for future investment in cloud-based computing services and advanced manufacturing. We are Australia’s comeback capital, but we also want to be Australia’s destination for all things digital.”

Charles Darwin University College of Engineering, IT and Environment Dean, David Young said: “CDU educates IT and engineering professionals, and we are excited to work with NEXTDC, Vocus and the NTG to provide a tech workforce for the Territory in areas such as data science and cybersecurity. CDU has a close relationship with the IT and energy industries of the Northern Territory, who take our students as interns and permanent employees. The proximity of D1 to the new CDU Campus will immerse our students in a world-class digital ecosystem.”

Vocus Chief Executive Officer, Kevin Russell commented on the announcement, “Vocus and NEXTDC make ideal partners to bring the Digital Territory Strategy to life. Vocus recently completed the Terabit Territory fibre upgrade, delivering 25 times more capacity into Darwin, and we’ve commenced work on the Darwin-Jakarta-Singapore Cable system and Project Horizon which will provide a new fibre route from Perth to Port Hedland and onto Darwin. With NEXTDC’s D1 and Vocus’ major fibre infrastructure investments, Darwin now rivals Australia’s major capitals when it comes to digital connectivity.”

HyperOne Chief Executive Officer, Bevan Slattery said: “We are very excited to see the continued investments into digital infrastructure in the Northern Territory and look forward to partnering with NEXTDC and the Northern Territory Government to turn Darwin into Australia’s digital gateway to Asia. With more than 500 million people within 50 milliseconds of Darwin, the NT’s digital potential is huge. Investments being made by NEXTDC and HyperOne will transform the Territory economy and will make it the digital hub of Northern Australia. HyperOne’s $1.5bn investment in a new Hyperscale national network is critical to enabling traffic globally to travel via Darwin to the rest of the country”

Reach out to NEXTDC to find out more.

Source: NEXTDC

The Morrison-Joyce Government is backing regional industries that create wealth with a new $7.1 billion investment pipeline to drive economic growth and make Australia as strong as possible as quickly as possible.

Under the new Energy Security and Regional Development Plan, the Government will develop key regions across Australia, transforming them into next generation export hubs.

Turbocharging these regional economies will enable people to get the job they want and to pursue their dreams.

Through targeted investments in infrastructure, low emissions technology and energy production, resources extraction and processing, and water infrastructure, we will open up new frontiers of production and growth.

This will attract new sources of investment to Australia, further unlocking the potential of our regions and supporting the industries that earn the export dollars that make us wealthier and stronger.

Our investments include:

• $2.6 billion for projects in the Northern Territory;
• $1.7 billion for projects in North and Central Queensland;
• $1.5 billion for projects in the Pilbara region in Western Australia; and
• $750 million for projects in the Hunter region in New South Wales.

With projects across all regions announced, the remaining balance of funding will be invested into existing Government programs and priority projects in the nominated regions, with further announcements to be made in due course.

These regions will drive our economy, strengthen export markets and support the growth of existing and emerging industries, including mining, agriculture, energy, critical minerals and advanced manufacturing.

In addition to the $7.1 billion investment pipeline, the Government will also invest in projects and initiatives that enhance liveability and boost safety and wellbeing in regions across the entire country, including:

• $678.0 million to upgrade and further seal sections of the Outback Way in the Northern Territory, Queensland and Western Australia.
• $180.1 million to establish the Regional Australia Level Crossing Safety Program, delivering safety upgrades to level crossings in regional and rural areas; and
• $66.0 million to expand access and reduce out-of-pocket costs to magnetic resonance imaging services in rural and remote areas.

Northern Territory

The Government will invest $2.6 billion in infrastructure projects across the Northern Territory, transforming it into an industrial hub for next generation exports.

• $1.5 billion to build new port infrastructure, such as a wharf, an offloading facility and dredging of the shipping channel, to boost the region’s importing and exporting ability.
• $440 million to build new logistics hubs at Alice Springs, Katherine and Tennant Creek to facilitate more export activity out of the Northern Territory.
• $300 million to support low emissions LNG and clean hydrogen production at Darwin, together with associated carbon capture and storage infrastructure.
• $200 million to further develop the Middle Arm Sustainable Development Precinct, delivering enabling infrastructure such as a rail spur and a new road network to strengthen supply chains.
• $110 million in additional funding to continue to upgrade and further seal the Tanami Road, better connecting mining, resources, tourism, and agribusinesses between the Northern Territory and Western Australia.

North and Central Queensland

The Government will invest $1.7 billion in large-scale infrastructure to help North and Central Queensland realise its potential and become a major global supplier of food and fibre.

• $483 million towards the future construction of Urannah Dam, pending demonstration of value for money and sufficient public benefit for investment, to unlock more irrigated agriculture and providing water security.
• $400 million to further upgrade the Inland Freight Route, better connecting regional mining and agriculutral businesses with domestic and international markets.
• $80 million towards the future construction of the Bowen Pipeline, subject to completion of the detailed business case, confirmation of total delivery costs and co-funding, and demonstration of value for money and public benefit.
• $12.5 million towards a package of groundwater improvements in the Lower Burdekin.
• $11.5 million towards a package of strategic planning work to help determine the optimal mix of water infrastructure investment in the Burdekin and Central Queensland.
• $8.0 million in additional funding to support construction of the Big Rocks Weir.
• $7.7 million to construct new common-user infrastructure at the Port of Bundaberg as part of the Hinkler Regional Deal, building on the Government’s existing $10 million commitment to this project.

Pilbara region

The Government will invest $1.5 billion to support new industries in the north-west, establishing the Pilbara region as a major hub for exports.

• $400 million in additional funding to completely seal the Tanami Road to the Western Australian border, improving safety, accessibility and flood resilience to better support communities and industries along the route.
• $285 million to deliver infrastructure upgrades at the Port of Dampier, building its capacity to support next generation export industries.
• $280 million to construct additional infrastructure at Lumsden Point to better faciliate imports.
• $200 million to increase onshore processing and value-add of iron ore exports, to support low emissions steel production in Indo-Pacific customer countries like Japan and Korea.
• $200 million to enhance Australia’s supply chain security through new low emissions manufacturing facilities (using hydrogen and hydrogen-derivatives like ammonia, as well as carbon capture utilisation and storage) in the Pilbara region.
• $100 million to de-risk private sector investment in firm generation and grid infrastructure to increase system strength and capacity in the Pilbara region.

Hunter region

The Government will invest $750 million to support the Hunter’s expansion into new export industries while continuing to support traditional industries, strengthening the local economy and its position as a leading exporter to the world.

• $268.8 million to build the New England Highway Bypass to Muswellbrook, better connecting regional industries and helping them get their products to port.
• $100.0 million to support pre-Final Investment Decision activities and early works to make the Port of Newcastle ‘hydrogen ready’.

Across these regions, the Government will work with jurisdictions and industry to prioritise and deliver these commitments. Funding is conditional pending completed business cases demonstrating value for money and sufficient public benefit for investment, options for co-funding, and consideration of interaction with other relevant processes and initiatives across governments.

Source:

The Hon Barnaby Joyce MP

Deputy Prime Minister

Minister for Infrastructure, Transport and Regional Development

Media contact:

Deputy Prime Minister – Antony Perry | 0477 971 654 | Antony.Perry@infrastructure.gov.au

Operational update: Approximately 17% upward revision to Tanumbirini 2H and 3H flow test results 

Tamboran Resources told the market this morning that the increase in gas flows follows a recalibration of historic flow data it reported at the beginning of last month. 

The recalibration now indicates average gas flow rates were 2 million standard cubic feet per day at T2H and 1.7Mmscfd/d at T3H - still below the 3Mmcf/d Tamboran has previously said it needed to make the project commercially viable. 

Tamboran managing director and CEO Joel Riddle said compositional analysis from Velkerri B shale interval gas samples confirmed the presence of high-quality gas in both wells, with the well test gas rates being updated based on the analyses. 

"The revised flow rate data has resulted in an approximately 17% increase to the 14-day average gas flow rate for the T2H well to 3MMscf/d and in the ten-day average gas flow rate for the T3H well to 2.9MMscf/d, normalised over a 100m horizontal section," he said. 

T2H has been drilled to 4598m total measured depth and has been stimulated across 11 stages, while T3H has been drilled to 4857m and stimulated over 10 stages. 

Riddle noted that the T2H well continued being flow tested throughout March, with the 60-day average flow rate showing minimal decline, delivering 1.8MMscf/d over the stimulated 660m lateral section, normalised at 2.7MMscf/d over 1000m. 

T3H has been shut in for pressure build up and tubing. 

"Flow testing at this rate from the fracture stimulation program gives us increased confidence in the productivity and has not changed our understanding of the commerciality of the Mid-Velkerri B shael within the Beetaloo Sub-Basin," he said. 

Tamboran said that Santos was assessing the possibility of running production tubing in the T2H well during the current quarter. 

Earlier this month the federal government announced it was giving the JV A$7.5 million from the Beetaloo Cooperative Drilling Program. 

Tamboran's cash will go to drilling its Maverick-1 well in wholly owned acreage beside the Tanumbirini project.

Tambaoran's share price is flat, trading at 22.5c. 

Source: Energy News Bulletin

View full ASX announcement here

Sun Cable has completed a AUD210 million Series B capital raise with their existing shareholders to fund the development work of the Company’s marquee project, the Australia-Asia PowerLink (AAPowerLink), as well as accelerate the progress of the Company’s portfolio of multi gigawatt generation and transmission projects.

Led by Grok Ventures and Squadron Energy (a wholly owned subsidiary of Tattarang), the capital raise will support Sun Cable’s development of the world’s largest intercontinental renewable power system, connecting Australia to Singapore, and its mission, to supply renewable electricity from resource abundant regions to growing load centres, at scale. Enabled by a team of over 80 experts, Sun Cable has developed unique intellectual property to facilitate the optimal design of complex dispatchable renewable electricity generation and transmission projects.

Sun Cable’s flagship project, the AAPowerLink will harness and store solar energy from the Northern Territory in Australia and transmit it to Darwin and Singapore via a high voltage direct current (HVDC) cable transmission system.

David Griffin, Sun Cable Founder & CEO says “We have developed a world leading capability in four short years. We are thrilled to have materially strengthened our resources with the support of all of our shareholders, who are such strong advocates for our mission. This capital raise will enable the delivery of renewable solar power from Australia to Singapore, advance our other multi gigawatt scale projects, and support the progress of key facilitating assets.

“We are buoyed by the level of support from our investors and key stakeholders including governments, offtakers, suppliers, and the communities in which we operate,” he continues.

Dr Andrew Forrest AO, Chairman of Tattarang says “Sun Cable’s vision will transform Australia’s capability to become a world-leading generator and exporter of renewable electricity and enable decarbonisation. I’m proud to be a cornerstone investor in Sun Cable, its team and its vision. This capital raise is a critical step in developing the Australia-Asia PowerLink and I applaud Sun Cable realising this mission.”

Mike Cannon-Brookes, Principal of Grok Ventures says, "This brings Australia one step closer to realising our renewables exporting potential. We can power the world with clean energy and Sun Cable is harnessing that at scale. It's a blueprint for how we export energy across the world. We fully back this vision."

To access full media release, click here

Source: Sun Cable

Santos, as operator of the Bayu-Undan offshore gas production facility in Timor-Leste and Darwin LNG, has today announced entry into the front-end engineering and design (FEED) phase for the proposed Bayu-Undan carbon capture and storage (CCS) project.

The Bayu-Undan CCS project could potentially safely and permanently store up to 10 million tonnes of carbon dioxide per annum, equivalent to about 1.5 per cent of Australia’s carbon emissions each year.

The project has the potential to be the largest CCS project in the world and one of the many that will be critical to help the world meet its climate goals. The IEA Roadmap to Net Zero by 2050 envisages carbon capture, utilisation and storage growing to 7.6 billion tonnes of CO2 per year by 2050 from around 40 million tonnes per year today.

The Bayu-Undan FEED work will include engineering and design for additional CO2 processing capacity at Darwin LNG plus repurposing of the Bayu-Undan facilities for carbon sequestration operations after gas production ceases.

Santos is working closely with the Timor-Leste regulator, ANPM, towards the necessary agreements and regulatory framework that will be required for the Bayu-Undan CCS project. The project will also need agreements between the governments of Timor-Leste and Australia, and some Australian regulatory arrangements.

Santos Managing Director and Chief Executive Officer, Kevin Gallagher, said taking FEED builds on the growing momentum for the regional carbon reduction project.

“Located in Timor-Leste with potential CO2 sources from Australian gas projects and other industries in the Northern Territory, Bayu-Undan CCS could be the start of a valuable new carbon services industry for Timor-Leste. It would create new jobs and a new revenue stream for the nation once gas production from Bayu-Undan ceases,” Mr Gallagher said.

“Entry into the FEED phase has strong support from our five joint venture partners headquartered in Japan, Korea and Italy. And last month, a meeting of the Timor-Leste and Australian Prime Ministers included a commitment by Australia to establish an LNG Partnership Fund to deepen links between Australia and Timor-Leste in gas development and trade, including in the use of carbon capture and storage.

“With about 80 per cent of the world’s energy still coming from hydrocarbons, including natural gas, and new supply investment still required to meet the world’s ongoing demand for these products, it is essential that we decarbonise their production. CCS offers a large-scale, low-cost and permanent way to progressively make these fuels cleaner. CCS will also enable new clean fuels industries such as hydrogen which will dramatically reduce not only Scope 1 and 2 emissions, but Scope 3 emissions as well.”

Santos has a 43.4 per cent operated interest in Bayu-Undan and Darwin LNG. The remaining interest is held by SK E&S (25 per cent), INPEX (11.4 per cent), ENI (11 per cent), JERA (6.1 per cent) and Tokyo Gas (3.1 per cent).

Santos’ approved Barossa project is one of several potential CO2 sources for Bayu-Undan CCS, but importantly this project offers a whole of region carbon solution.

A final investment decision on Bayu-Undan CCS is targeted for 2023, subject to relevant regulatory frameworks and agreements being in place in both Timor-Leste and Australia.

To view the ASX announcement, click here

The Australian Government will provide the Northern Land Council (NLC) with $2.1 million to conduct on-country engagement with Traditional Owners and Native Title holders in the Northern Territory’s Beetaloo Sub-Basin.

The grant will ensure Traditional Owners and Native Title holders have the support they need to make informed and timely decisions regarding development activities in the Beetaloo. 

Minister for Resources and Water Keith Pitt said the funding will ensure that Traditional Owners are empowered to make informed decisions about development on their land.

“Our government is committed to ensuring that the social and economic benefits from Beetaloo gas development are maximised and realised locally, especially for Indigenous communities,” Minister Pitt said.

“The ongoing development in the Beetaloo Sub-Basin is increasing the demand for the NLC’s consultation and negotiation services.

“This grant means the NLC will have additional capacity to undertake its functions in regards to development activities in the Beetaloo.”

The grant will be put towards employing new staff, better meeting facilities and providing the equipment the NLC needs to work with communities in the basin.

The grant supports the Beetaloo Cooperative Drilling Program and helps accelerate the development of the Beetaloo through timely land access arrangement negotiations with onshore petroleum explorers and operators. 

The Hon Keith Pitt MP

Minister for Resources and Water

Media contact: Minister Pitt's office 02 6277 7180

The Coalition Government is helping to boost the development of the nation’s gas reserves with a $7.5 million grant to support exploration in the Northern Territory’s Beetaloo Sub-Basin.

The grant agreement with Sweetpea Petroleum Pty Ltd, a subsidiary of Tamboran Resources, will further assist gas operators in their efforts to prove up Beetaloo gas reserves. 

All regulatory approvals will need to be in place prior to any funding being provided under the grant.

Minister for Resources and Water Keith Pitt said the grant underlined the commitment of the Government to opening up Beetaloo.

“Beetaloo has the potential to provide a world-class gas resource and we are determined to support its development as part of our gas-led recovery,” Minister Pitt said.

“This grant under the Beetaloo Cooperative Drilling Program is expected to bring forward $52 million in private investment at Sweetpea Petroleum’s Maverick 1 well.

“Investment such as this will help accelerate gas development in the Beetaloo, which has the potential to create thousands of jobs. 

“Gas from the basin can also make a significant contribution to maintaining Australia’s affordable and reliable energy supplies.

“We should take the energy crisis in Europe as a warning of what could happen in Australia if there is not enough investment in the gas sector.

“As uncertainty grips the world, our international partners will look to Australia for the resources they need to provide energy security.

“In an uncertain world, our reputation as a leading and reliable supplier of resources can provide stability and development of the Beetaloo will enhance that well-deserved reputation.”

The Beetaloo Cooperative Drilling Program is part of the Beetaloo Strategic Basin Plan and the Government’s $226 million commitment to the Beetaloo, which is supporting gas operators to speed up exploration and development of the basin.

The Hon Keith Pitt MP

Minister for Resources and Water

Media contact: Minister Pitt's office 02 6277 7180

Beetaloo Drilling Grant Agreements Executed

Empire Energy is pleased to provide an update regarding grants awarded under the Australian Government’s Beetaloo Cooperative Drilling Program.

Empire’s wholly owned subsidiary, Imperial Oil & Gas Pty Limited (“Imperial”), has executed grant agreements with the Australian Government totalling up to $19.4 million which will offset 25% of the cost of seismic acquisition and the drilling, fracture stimulation and flow testing of three horizontal appraisal wells in its 100% owned EP187 tenement, located in the Beetaloo Sub-basin, Northern Territory.

The new grant agreements replace previous grant agreements which became void as a result of a decision of the Federal Court of Australia which found, inter alia, that the instrument under which the Beetaloo Cooperative Drilling Program was formed and the decision to approve funding to Imperial (the “Approval Decision”) were valid.

The grant agreements are on materially similar terms to those entered into previously and reported to shareholders on 10 September 2021. Activities already carried out by Imperial in EP187 in accordance with the original approval decision including the Charlotte 2D seismic survey and the drilling of Carpentaria-2H are eligible for grant funding in accordance with the Approval Decision.

Access full announcement here

THE HON KEITH PITT MP

Minister for Resources and Water

Member for Hinkler

MEDIA RELEASE

Australia’s LNG sector ready for the future: Report 

A new Government report encouraging trade and investment in Australia’s liquefied natural gas sector confirms our reputation as a reliable and responsible supplier of energy and resources.

The Liquefied Natural Gas (LNG) Commodity Report, part of Australia’s Global Resources Strategy, highlights Australia’s comparative trade and investment advantages between now and 2050.  

Minister for Resources and Water Keith Pitt said the Australian Government is committed to delivering the strongest and most business-friendly investment environment for the Australian resources sector.

“Australia offers a strong, stable and transparent regulatory environment as well as research and development incentives to support innovation,” Minister Pitt said.

“Our proximity to Asia and high quality resources have seen us become the supplier of choice in global supply chains.

“We will seek to consolidate and strengthen this position in the decades to come.”

Minister Pitt said the report found that Australia, one of the world’s largest LNG suppliers, is a secure and competitive destination for developing LNG projects.

“Investors can have confidence in Australia’s stable regulatory settings when making long-term investments,” Minister Pitt said.

The report identifies India and Bangladesh as major emerging LNG markets for Australia.

The Government is backing the LNG trade and investment potential between Australia, India and Bangladesh through a new South Asian LNG Partnership. Australia will invest $11.3 million over 10 years in the Partnership, which will build relationships across the LNG supply chain between participating countries.

The report is available on the Department of Industry, Science, Energy and Resources website.

ENDS

Media contacts: Matt Dunstan 0411 535 072

THE HON KEITH PITT MP

Minister for Resources and Water

Member for Hinkler

MEDIA RELEASE

23 February 2022

Minister for Resources and Water Keith Pitt has announced the Coalition Government has entered three grant agreements worth a combined $19.4 million to support gas exploration in the Northern Territory’s Beetaloo Sub-Basin.

Minister Pitt said under the Beetaloo Cooperative Drilling Program, the grants will support exploration company Imperial Oil & Gas to continue drilling three petroleum exploration wells.

Minister Pitt said this is an important step following the conclusion of the recent Federal Court action.

“The Government is committed to a gas-led recovery and we are now getting on with the job of opening up the Beetaloo as part of the Strategic Basins Plan and these grants will  assist in that important process,” Minister Pitt said.

“Australian gas is in high demand domestically and internationally and it’s important that we work to get new gas production online.”

“In an uncertain world, the reliability of Australian resources to our trading partners cannot be understated.

“As the ACCC confirmed recently, it is imperative, and to the benefit of all Australians, that new gas developments are opened up as soon as possible to ensure continuing domestic supply to homes and businesses across the country,” Minister Pitt said.

“Activists trying to stop or delay crucial gas projects threaten future energy security both here in Australia and in countries around the world that rely on our LNG exports.

“The Beetaloo Sub-basin has the potential to be a world class gas resource, that could create thousands of jobs and bolster domestic and international gas supply.

“Development and investment in the Beetaloo could be a game-changer for the Northern Territory, creating up to 6,000 jobs by 2040, supporting industrial diversification and providing stable tax and royalty streams for years to come,” Minister Pitt said.

“Our resources and energy sector is vitally important to the Australian economy and is forecast to generate a record $379 billion in exports this financial year.

“The taxes and royalties that are generated from the resources sector allow state and federal governments to provide the health, education and other essential services all Australians rely on."

ENDS

Media contact: Matt Dunstan 0411 535 072