Industry News

The CLP Government and the Republic of Indonesia have signed a Memorandum of Understanding to strengthen collaboration on critical mineral and strategic material supply chains.

Formalised at the Australian Indonesia Business Council in Sydney this morning, the agreement is a first of its kind between any Australian jurisdiction and Indonesia.

The agreement is designed to establish a collaborative framework that promotes sustainable development and economic growth, fostering mutual benefit for both the NT and Indonesia.

It also seeks to capitalise on the Northern Territory’s status as an emerging critical minerals powerhouse and reinforces the region’s strong partnership potential, as Indonesia progresses its ambition to become a Southeast Asian hub for electric vehicle manufacturing.

Minister for Trade, Business and Asian Relations Robyn Cahill said Indonesia was the largest economy in Southeast Asia and the 10^th largest economy in the world based on purchasing power.

“It is important that the Territory continues to strengthen relationships with our key economic partners and diversify our markets,” said Ms Cahill.

“By signing the Memorandum of Understanding with the Indonesian Government, we are sending a clear message that we are open for business and that we are well placed to advance trade, investment and strategic partnerships in Southeast Asia.”

The Northern Territory has a strong pipeline of emerging mining projects in non-ferrous metals, critical minerals, and precious metals for the advanced manufacturing of batteries, semiconductors and renewable energy technologies.

“The agreement promotes sustainable development and economic growth which will create more opportunities for Territorians,” said Mrs Cahill.

“Indonesia is one of the Territory’s closest neighbours and is an important economic and strategic partner for local businesses.”

Highlights in the agreement include:

• promoting opportunities for critical mineral investment
• encouraging joint studies, exploration, and development of processing and refinery technology
• collaborating on adopting and promoting sustainable and responsible mining practices
• facilitating a skills development program through education and training.

The five-year agreement recognises mutual interest in nurturing strong and diverse energy supply chains, strengthening trade and investment links, and supporting respective national objectives in critical minerals processing between Indonesia and the Northern Territory

Source: Northern Territory Government Newsroom 

Developing gas reserves in the Beetaloo is a potential solution to mitigating the east coast’s looming shortfall and it should be considered, a senior executive at APA Group says.

The comments illustrate potentially contentious choices policymakers will need to make to offset a shortfall of gas primarily in Victoria and NSW that threatens to be economically catastrophic.

However, developing gas reserves in the Beetaloo would be contentious. It threatens to inflame tensions with Indigenous groups, which insist the land is culturally sensitive and must be preserved.

APA group executive of operations Petrea Bradford said Australia would need to act on addressing the gas shortfall if it wanted to decarbonise.

“We know that gas is needed in the southern markets. We know there are resources that can deliver on that outcome to market,” Ms Bradford said.

“We know to decarbonise Australia, we need gas to be there.

“The Beetaloo in particular provides an opportunity to assist and support in that - transition.”

Empire Energy and Tamboran Resources, two junior resources companies, are leading work to develop a gas industry in the Northern Territory after the former territory government permitted franking in a bid to unlock the lucrative sector, but the move has attracted opposition.

APA has partnered with Tamboran and Empire to scope a potential pipeline that if developed would bring gas into the eastern markets.

APA’s positioning in the Beetaloo has caused shareholder unrest, with some investors criticising the company at its recent annual general meeting.

But while socially contentious, developing the gas in the Beetaloo has more policymaker support. The NT government has thrown its weight behind the project, in contrast to the Narrabri development in NSW that has received only tepid support from the state Labor government.

Australia faces a race against time to mitigate the impact of a gas shortfall. The Australian Energy Market Operator has warned that gas power stations may need to turn to burning diesel as soon as 2026 as supplies tighten. Even with mitigation steps, the dominant supplier of gas to the region – ExxonMobil and Woodside’s Bass Strait Longford facility – will have been depleted by 2028.

Gas industry executives hope the call for action spurs authorities to approve new supplies and inhibit the capacity of opponents to block new developments.

But expansion plans of Senex Energy, backed by Gina Rinehart and South Korean steel giant POSCO, remains the largest of a small number of developments given the green light – which energy officials have widely condemned.

The federal government insists it supports and values the role of gas, but critics say regulatory delays are indicative of its commitment to bolstering new supplies. Gas remains polarising and pockets of the electorate are deeply opposed to new developments. Critics of the government believe Anthony Albanese is unwilling to alienate a key voter bloc ahead of an election due next year.

Industry figures have warned postponing the decision leaves Australia badly exposed to supply disruptions, with little time to bring new supplies to market before supplies tighten. Without adequate gas supplies, traditional users – such as manufacturers that are unable to switch to renewables, and households in Victoria, face increased bills. Manufacturers have warned the viability of some industries will be at risk if bills were to rise.

Households with gas will also be stung in their electricity bills under a supply crunch. Gas is used in Australia as a peaker. During periods of high demand for electricity or when renewable energy supplies are curtailed during to unfavourable weather, gas is used for electricity generation.

Without enough supplies of gas, electricity generation would struggle to meet demand and prices would rise.

These increases in bills felt by consumers are unlikely to be seen by 2026 at the earliest, but Australia can ill afford a spike in utility bills.

Energy bills were a key driver in inflation surging amid a global energy crunch, which forced the Reserve Bank to lift interest rates 13 times.

The ensuing cost-of-living crisis has seen a record number of people struggle to pay their electricity bills, which has sapped support for the federal government.

Source: The Australian Business Review

The CLP Government has reinforced its commitment to the development of the Beetaloo Sub-Basin as a world-class precinct critical to the Territory’s economic development, and for domestic energy security.

Minister for Mining and Energy, Gerard Maley, recently visited the Beetaloo to inspect current operations by Tamboran Resources at its Shenandoah South site on Exploration Permit 98.

Mr Maley said the development of the Beetaloo Sub-Basin was an urgent priority of the CLP Government, saying it would create jobs, generate further private investment and build on the Territory’s many competitive advantages. 

“The Territory’s gas is what will help rebuild the Territory’s economy, and we have this resource here and ready to go,” he said.

"It will underpin renewables, power manufacturing and importantly, contribute to Australia’s energy security.”

“My recent visit to Tamboran’s operations gave me a first-hand view at the level of investment, technology and expertise that is being applied to the development of the Beetaloo.”

Following successful flow results earlier this year at its Shenandoah South 1H (SS1H) well, Tamboran is now drilling the first of two wells, the Shenandoah South 2H (SS2H) well at a new location about 5km from the SSH1 well.

“Tamboran is currently building on the favourable results it received in April this year, with new flow results expected in 2025 which will provide definitive confidence for investors to unlock more potential at the Beetaloo,” said Mr Maley.

“On the ground, I witnessed cutting-edge technology at the forefront of global innovation. There is significant work and planning being undertaken, and this will support the work of other operators in the fields such as Empire and Santos.”

Treasurer Bill Yan said: “The CLP recognises the economic contribution of our resources sector, and we are committed to unlocking the enormous potential of the Beetaloo Basin to rebuild the NT economy.

“The Beetaloo Sub-Basin is projected to bring in $1 billion a year in gas revenue, and create between 6,000 and 13,600 new jobs over a 25-year field life,” he said.

Tamboran has agreements with pipeline operator APA Group Pty Ltd for it to build a 35km pipeline from its Shenandoah South well sites, connecting the gas development area to the Amadeus Gas Pipeline.

This pipeline will enable gas from the Shenandoah sites to be transmitted to the Amadeus pipeline for commercial sale and is expected to be completed in 2026, subject to a range of conditions and approvals being met.

 

 

Source: Northern Territory Government Newsroom

The Australian Energy Regulator (AER) today released the State of the energy market 2024 report which provides a comprehensive review of the year that was across Australia’s energy markets.

The report covers key trends and developments in the gas and electricity markets, documenting the end-to-end operation of our energy markets.  

The report highlights that over the past year wholesale electricity prices have eased from the extreme levels of 2022 but are increasingly volatile. Weather conditions and outages at both generator and network levels during high demand periods contributed to the volatility. The market experienced record low electricity demand in New South Wales, Victoria, South Australia and Tasmania, but also record high demand in Queensland. 

Collectively, consumers have become an even more integral part of the energy transition through their investment in rooftop solar, batteries and electric vehicles, with residential solar in the National Electricity Market (NEM) now exceeding 20 gigawatts – 2.9 gigawatts more than last year.

AER Chair Clare Savage said that with the sector changing so fast, the importance of efficiency in the energy system has never been more critical.

“We’re calling for a renewed focus on network utilisation and improved efficiency – for industry to look for ways to more effectively use the existing network before investing in new assets. 

“Now is the time to get creative. Regulatory sandboxing tools such as the Energy Innovation Toolkit are available to allow for the trialling of innovative approaches to new products and services that will deliver greater choice and cheaper energy options for consumers.

“As technology evolves and the sector innovates, consumer protections must also be designed to support an energy system where consumers can use multiple energy services to consume, trade and produce energy. We’ve presented detailed analysis on this issue to Energy Ministers and look forward to seeing this progressed as part of the National Consumer Energy Resources Roadmap,” Ms Savage said.

Significant shifts have also been observed in gas markets. While gas will continue to play a role supporting electricity reliability and large industry for some time, we have observed further moves towards the electrification of domestic gases in the past 12 months.

Affordability and energy debt remained challenging for consumers. While the proportion of customers in debt has remained stable, the average amount of debt per customer increased in 2023–24. Rebate assistance from governments has helped offset energy price increases, however broader economic conditions have continued to impact consumers. 

Alongside the State of the energy market report, the AER will continue to publish a range of in-depth reports into specific parts of the energy system in the coming months.

Background 

For more than 15 years the Australian Energy Regulator’s (AER) flagship State of the energy market report has provided a comprehensive view of Australia’s electricity and gas markets and the experiences of consumers. 

Source: Australian Energy Regulator (AER)

Australian independent Empire Energy is on track to this month spud its eagerly awarded Carpentaria-5H (C-5H) well on its Beetaloo basin shale gas acreage onshore Australia.

The company is now focused on taking the final investment decision for its Carpentaria pilot project, and commencement of gas deliveries from mid-2025, subject to receipt of all regulatory approval.

Empire in its third quarter operational update said that planning for the C-5H well’s drilling, stimulation and tie-in continued “in anticipation of November commencement”.

The operator has chartered Ensign Rig 965 to drill the well and lined up US services contractor Halliburton to perform the fracture stimulation. Long lead items, including drill casing and wellhead, have been secured.

Following consultation with traditional owners in August, some of the traditional owners are working on the C-5H well pad site, which Empire said is consistent with its strategy to maximise the benefits of the company’s activities for local landholders and communities.

The C-5H well will be drilled from the same well pad and will target the same Velkerri B shale as Carpentaria-2H (C-2H) and Carpentaria-3H (C-3H); with these three wells forming form the initial phase of the Carpentaria pilot project.

C-5H will be Empire’s longest drilled and stimulated horizontal shale well to date, and will target an approximate 3000-metre horizontal section with some 60 fracture stimulation stages. The C-5H fracture stimulation is expected to commence shortly after Ensign's rig is released. Unlike the previous wells, C-5H will be completed with a five and a half-inch casing and stimulation horsepower significantly increased to maximise gas productivity, noted the operator.

Empire said that C-5H will integrate the best completion practices from North American shale analogues and incorporate learnings from its C-2H and C-3H wells.

The goals of C-5H include executing a development scale well for the Carpentaria pilot project, optimising fracture stimulation design to achieve higher productivity and conducting a long-term production test to develop a Carpentaria-type curve for long laterals for full-field development planning.

Empire has a 10-year binding Gas Sales Agreement with the Northern Territory government to supply 25 terajoules per day from the Carpentaria pilot project commencing in 2025, plus an additional 10 TJ+ per day Option Supply.

“During the [third] quarter, the Empire team has been focused on preparation for delivering the Carpentaria-5H pilot development well later this year and the installation of the Carpentaria Gas Plant in 2025,” said Empire managing director, Alex Underwood.

“We have all approvals in place for the drilling and stimulation of Carpentaria-5H and we are progressing approvals for the commencement of gas sales through the plant into the McArthur River Gas Pipeline with the Northern Territory government and the Northern Land Council on behalf of traditional owners.”

Underwood added that Empire has selected a preferred financier and would update shareholders once that process reaches its conclusion.

Source: Upstream

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Territorians sent a clear message that business as usual is not good enough when we are languishing on the bottom of most economic charts across the nation.

Chief Minister Lia Finocchiaro said: “Already, you have seen the new CLP Government move swiftly to rebuild our economy with our HomeGrown Territory grants, and payroll tax breaks for small business.”

“Next, we are gearing up to kick start economic growth and the Territory Coordinator will play a key role in that,” she said.

“Today, Labor tried to play political games and throw mud at our election commitment for a Territory Coordinator but we have been elected to deliver change for the better.

“Does this mean they don’t support our plans to rebuild the economy? Are they OK being the hardest place to do business and bottom of the charts?

“My Department is currently doing targeted consultation with a range of groups, including the land councils, local government, Environment Protection Authority, Controller of Water Resources and the Heritage Council, yet somehow Labor wants to kill economic growth before it even happens.

“Feedback from stakeholders will help shape the final legislation before its introduction to the Legislative Assembly in future sittings and at that time all members and the community will be able to have their say.”

The Territory Coordinator will:

• Fast-track major investments, making it easier for investors to bring big ideas to life.

• Streamline approvals across government, removing roadblocks to economic progress.

• Boost the Territory’s competitiveness, attracting large-scale investments to fuel growth and development.

“The Territory Coordinator is key to unlocking the potential of the Northern Territory,” said Mrs Finocchiaro.

“This structure will not only fix log jams in processes but also ensure we are competitive on the global stage when attracting investment. 

“It’s about creating jobs, driving growth, and making the Territory a place where projects of significance can get off the ground.

“My team is not about games, we are laser focused on reducing crime, rebuilding the economy and restoring our lifestyle.”

Source: NT Government newsroom

Territorians living in apartments and units across the Territory will soon be able to access shared rooftop solar, with the CLP Government launching a new grant scheme in partnership with the Australian Government.

Around 300 Territory households are set to benefit from this scheme.

Minister for Renewables, Gerard Maley said “We know that cost of living pressures are hitting the hip pockets of Territorians, and this initiative will help more households to generate their own electricity and slash power bills.”

“This grant will support the installation of new shared rooftop solar for those living in apartments that traditionally haven’t been able to access the cost savings of renewables,” Mr Maley added.

The $2.35 million initiative is funded through the Australian Government’s Community Solar Banks program and managed by the Northern Territory Government.

The scheme supports apartment complexes across the Northern Territory to install shared rooftop solar systems – potentially slashing power bills by up to $500 a year, per dwelling.

Applications will soon be open for the first round of the scheme, which will make it cheaper and easier for Territory apartment residents to install shared rooftop solar.

Around 18 per cent of Territory households live in apartments or units, with more than half of these occupied by renters.

Grants of up to $7,500 per dwelling or apartment will be offered to eligible Body Corporates and other multi-dwelling management entities to support up to half of the cost of installing a shared solar PV system.

“The CLP Government is restoring our lifestyle, and easing cost-of-living pressures is one way we are helping Territorians do just that,” said Mr Maley.

For more details, or to see if you are eligible to apply go to Programs | Territory Renewable Energy (nt.gov.au) https://territoryrenewableenergy.nt.gov.au/programs">https://territoryrenewableenergy.nt.gov.au/programs

Source: Northern Territory Government Newsroom

The CLP Government is delivering on another election commitment, announcing it will save Territory businesses up to $68,750 every year through payroll tax reforms.

On average, businesses will save $22,000 annually, and payroll tax will be eliminated for about 200 existing businesses, incentivising businesses to employ more people.

Chief Minister Lia Finocchiaro and Treasurer Bill Yan said the changes would give the Territory the highest payroll tax tax-free threshold in Australia, increasing from $1.5 million to $2.5 million.

Employers with wages between $2.5 million and $7.5 million will also see reduced payroll tax.

Payroll tax for businesses with wage bills below $2.5 million will be waived, starting 1 January, 2025 while businesses between $2.5 million to 7.5 million will see their tax bill decrease from 1 July 2025.

“The changes will eliminate payroll tax and red tape for about 200 employers, with another 380 businesses benefiting from reduced taxes,” said Mrs Finocchiaro.

“Our government promised we would rebuild the economy, and that is what we’re doing.”

Treasurer Bill Yan added: “In addition, apprentice and trainee wages will also be exempt from payroll tax from 1 July 2025 as part of the new $2.5 million threshold, saving businesses thousands of dollars more while encouraging them to invest in growing Territory apprenticeships and traineeships.”

There are about 3,700 apprentices and trainees in the Territory.

“Our changes mean Northern Territory employers with total payrolls below $2.5 million will not pay payroll tax at all,” said Mr Yan.

“To get the Territory’s economy moving forward and rebuilding our reputation, we need to be the most competitive place to do business in the country.”

Plumbing Maintenance Services owner Pat Whitehead said as the cost of doing business rises, tax relief in the form of payroll tax cuts were very welcome.

“We have 26 plumbers employed on our books, including apprentices, and this absolutely gives us incentive to grow and employ more people,” he said.

“Our wage bill is a huge component of running our business, so to have this relief will not just save jobs, but grow them.”

Source: Northern Territory Government Newsroom

INPEX has announced the formation of a new partnership with Japanese Chubu Electric Power aimed at assessing the feasibility of establishing a cross-border carbon capture and storage (CCS) value chain.  

The study focuses on capturing CO2 in Japan and transporting it from the Port of Nagoya in Aichi Prefecture to offshore reservoirs in Australia's depleted Bonaparte Basin storage. 

In 2022, INPEX and its joint venture partners - TotalEnergies and Woodside Energy - secured a greenhouse gas (GHG) storage assessment permit, G-7-AP, which spans 27,500 square kilometres in the Bonaparte Basin off the NT's northwestern coast.  

According to Geoscience Australia, the Bonaparte Basin consists of 14 structural elements, including the Vulcan Sub-basin, Laminaria-Flamingo High and northern Sahul Platform, which are the most prospective parts. 

The INPEX-led consortium aims to begin CO2 injection around 2030, which could potentially become a key component of the Darwin-based carbon capture, utilisation and storage (CCUS) Hub proposed by the NT Government.  

INPEX's Ichthys LNG project would also be a natural user of this CCS solution as it seeks to reduce its GHG emissions. 

According to the Japanese gas developer's Long-term Strategy and Medium-term Business Plan released in 2022, CCUS is one of INPEX's five net zero business areas and sets a target of achieving an annual CO2 injection volume of 2.5 million tons or more by around 2030.   

The company also aims to provide a stable supply of diverse and clean energy sources, including oil, natural gas, hydrogen, ammonia and renewables, as a pioneer in energy transformation. 

Chubu is one of Japan's biggest power utilities, serving the central region that's home to major automakers, including Toyota Motor. The utility firm is also a 50% owner of JERA, Japan's top thermal power plant operator and the world's biggest LNG importer. 

The Carbon Capture Utilisation and Storage Network Australia (CCUSNA) has been contacted for comment. 

 
Inpex locks in approval to start CCS drilling plans 

Late last year, Australia's offshore regulator gave INPEX the green light to begin its CCS drilling program in the Bonaparte Basin.  

Geoscience Australia believes the Bonaparte CCS project could inject between 2 million and 7 million tonnes per year, but that it could come online in 2026, a year earlier than Santos' Bayu-Undan project. 

Inpex has identified two saline reservoir-seal pairs with a storage capacity of 15.9 gigatonnes, or 300 trillion cubic feet of CO2. 

Source: Energy News Bulletin

SunCable has today been granted Conditional Approval by the Singaporean Government’s Energy Market Authority (EMA) to import green electricity via its flagship project the Australia-Asia PowerLink (AAPowerLink).

The Conditional Approval follows a comprehensive process by the EMA which determined that AAPowerLink is technically and commercially viable.  

Mitesh Patel, Interim CEO of SunCable International, welcomed the announcement and thanked the EMA and the Singaporean Government for their support.

“Today’s announcement is a vote of confidence in the commercial and technical viability of our project,” he said.

“Obtaining Conditional Approval means SunCable can move forward with the next phase of development and commercial activities and strengthening our partnership with Indonesia.

“We will also progress commercial discussions with industrial customers in Singapore and engagement with the Northern Territory Government and the Traditional Owners of the project site.

“We are seeking to supply up to 1.75GW (15 per cent) of Singapore’s total electricity needs, and to critically diversify Singapore’s technology and import origin mix, which will improve the resilience of the country’s energy grid and help it achieve its Net Zero goals.”

The AAPowerLink aims to deliver 1.75GW of green electricity to customers in Singapore.  

This is in addition to the planned 4GW staying in Australia to power future green industries in Darwin.

SunCable will uniquely offer customers a firm 24/7 load sourced from solar and wind energy backed by storage to meet Singapore’s day and night-time renewable energy demand.

Energy will be generated in the Barkly region of the Northern Territory, which offers some of the world’s best renewable resources, facilitating globally cost-competitive and secure green power.  

To date, SunCable has invested over AUD $270 million across Australia, Singapore and Indonesia to support the development of the project.

“Receiving Conditional Approval provides increased confidence in the concept of developing cross-border electricity trade, and establishing a new export industry for Australia,” Mr Patel said.

“High voltage long-distance subsea cables are critical to the global energy transition, and solve for the transmission of green electrons within and between countries.”

Electricity demand in the Asia-Pacific is set to increase by 70 per cent by 2040 and more than double by 2050, Mr Patel said.

“SunCable has identified the opportunity for Australia to play a key role in meeting this demand by building landmark projects that utilise High Voltage Direct Current subsea cable to connect high-yield renewable energy generation in the Northern Territory to major cities throughout the region,” he said.

Today’s approval builds on a series of recent project milestones reached by SunCable.  

In August, the AAPowerLink received its principal Commonwealth Government environmental approval, allowing the company to pursue the next phase of development, working closely with valued stakeholders in Australia and overseas.

The project will create thousands of jobs and an estimated AUD $20 billion in economic value to the Northern Territory over its construction and operation phases.

SunCable is advancing key authorisations and approvals with the Northern Territory Government and with the Traditional Owners of the generation site, and is progressing commercial offtake discussions with green industrial proponents in the Darwin region.

The company will also continue development activities in Indonesia and Singapore.  

It will spend USD $2.5 billion directly in Indonesia over the project’s lifespan, creating an estimated 7,500 jobs across sectors including manufacturing, construction, marine, maintenance, and energy.

SunCable has already started to help grow Indonesia’s renewable energy workforce by investing in and funding various partnerships, scholarships, and joint research projects.  

In Singapore, SunCable’s clean energy import will increase energy security and resilience; drive green industrial development; support Net Zero goals; create jobs; and directly abate six megatons of carbon each year.

Source: SunCable