Industry News

Building a productive onshore gas industry that protects our unique environment and delivers local jobs

Implementation of pre-exploration recommendations completed

The Northern Territory Government has completed all recommendations summarised in Table 16.1 of the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory Final Report.

This means the Northern Territory Government can assess applications for drilling of petroleum wells and hydraulic fracturing.

The Government has also finalised its Petroleum Reserved Block Policy, following consultation in May/June 2019.

This policy completes the Final Report’s recommendation on reserved blocks, which stated there should be areas that are off limits to any petroleum activities due to unique values of these areas, or their important role in providing environmental, social, health and cultural benefits to surrounding communities.

The areas to be declared reserved blocks are:

• areas of high tourism value,
• towns and residential areas (including areas that have assets of strategic importance to nearby residential areas),
• national parks, conservation reserves,
• areas of high ecological value,
• areas of cultural significance and
• Indigenous Protected Areas.

The formal establishment of the no-go zones under the Petroleum Act will occur in a staged process, with up to 49% of the Territory identified to be protected from petroleum activity.  

Action will be taken immediately to declare no-go zones. Further consultations and negotiations will be undertaken with stakeholders, including Land Councils, to determine whether they want to declare areas within ALRA as no-go zones.

Eighty-seven areas will be declared Reserved Blocks as a priority as part of Tranche 1 of declaring no go zones.  This is about 11% of the NT.

The remaining areas for declaration requires notifications to park or reserve’s Board of Management (Tranche 2), negotiation with a petroleum company if the area interacts with a granted exploration permit (Tranche 3) and consultation with Land Councils (Tranche 4).

Government is also including the municipalities of Katherine and Alice Springs as a reserved block as well as the Alice Springs airport and the two bore fields that are the current and future town water supply for Alice Springs’, being the Roe Creek and Rocky Hill bore fields.

The Monitoring and Compliance Strategy has also been released which outlines how key Government agencies will undertake active compliance, monitoring and surveillance to detect any non-compliances in the gas industry. Visit the NTG Newsroom to read more.

For information on progress towards the implementation of each of the 135 recommendations from the Inquiry – including the completion of the 31 recommendations required for exploration – go to: https://hydraulicfracturing.nt.gov.au/action-items

Information outlining no-go zone areas, the no-go zone policy and associated maps are available to view here: https://nt.gov.au/industry/mining-and-petroleum/land-tenure-and-availability/petroleum-reserved-blocks 

Submissions received during no go zone public consultation period are available to view here:  https://haveyoursay.nt.gov.au/

First Onshore Shale Gas Exploration Drilling Environment Management Plan Approved

The first Environment Management Plan (EMP) for Onshore Shale Gas Exploration Drilling has been approved in the McArthur Basin, following the completion of the 31 recommendations required to be completed prior to exploration and drilling recommencing. Visit the NTG Newsroom to read more.

Independent Oversight 

Implementation of the recommendations has required careful management and coordination. The appointment of the Independent Officer to oversee the implementation of the recommendations ensures increased transparency and accountability of the implementation process, outside normal government reporting systems. Recognising the importance of this role, the Chief Minister has extended the Independent Officer’s appointment beyond the end of 2019, to ensure this independent oversight continues. In his role as Independent Officer overseeing implementation of the recommendations, Dr David Ritchie is now set to stay in this role for a further six months.

To contact the Independent Officer, email Dr David Ritchie at independent.oversight@nt.gov.au

Onshore Shale Gas Community and Business Reference Group

The Onshore Shale Gas Community and Business Reference Group (Reference Group) are instrumental in providing feedback to government on the development of the implementation framework and its subsequent execution, in accordance with recommendation 16.4. The Reference Group has proven to be a valuable medium for stakeholders in the wider community to communicate their views. It has been an essential forum for sharing information and providing opportunities for collaboration with a diverse group of stakeholders from across the community, environmental groups, local business, land councils, gas industry and local government.

The Chief Minister has invited the Reference Group to extend their tenure beyond the initial 12 month period.

The fifth Onshore Shale Gas Community and Business Reference Group meeting is scheduled for 28 August, 2019.

To contact the Reference Group, email CBreference.Group@nt.gov.au

If you have any further questions, you can contact the Hydraulic Fracturing Inquiry Implementation Taskforce at hydraulic.fracturing@nt.gov.au

The Territory Labor Government has announced no-go zones for gas exploration and production, and released the Compliance and Monitoring Strategy. 

All 31 recommendations identified by the Scientific Inquiry into Hydraulic Fracturing (Inquiry) as requiring implementation before exploration drilling and fracking can occur have now been implemented.

The Territory Labor Government has implemented the criteria for no-go zones from the Inquiry, coupled with areas where there is no petroleum potential.

The formal establishment of the no-go zones under the Petroleum Act will occur in a staged process, with 49% of the Territory identified to be protected from petroleum activity.  

Action will be taken to declare immediate no-go zones. Further consultations and negotiations will be undertaken with stakeholders, including Traditional Owners, to determine whether they want to declare areas within Aboriginal Land as no-go zones.

Following community consultation and feedback, Katherine and Alice Springs municipalities are both to be declared as no-go zones.

The Compliance and Monitoring Strategy outlines how key Government agencies will undertake active compliance, monitoring and surveillance to detect any non-compliances in the gas industry.

For information on progress towards the implementation of each of the 135 recommendations from the Inquiry – including the completion of the 31 recommendations required for exploration – go to: https://hydraulicfracturing.nt.gov.au/action-items

Information outlining no-go zone areas, the no-go zone criteria are available to view here: https://nt.gov.au/industry/mining-and-petroleum/land-tenure-and-availability/petroleum-reserved-blocks 

Submissions received during public consultation are available to view here: https://haveyoursay.nt.gov.au/

The Compliance and Monitoring Strategy is available to view here https://denr.nt.gov.au/onshore-gas/onshore-gas-in-the-northern-territory/industry-compliance-and-reporting

Quotes from the Minister for Primary Industry and Resources, Paul Kirby:

“The Territory Labor Government has done exactly what we promised to do.

“Today we have reached a significant milestone with the completion of all the pre-exploration recommendations.

“Our Government will make sure that as the Territory’s onshore gas industry emerges, our unique natural environment is protected and local jobs come first.

Quotes from the Minister for Environment and Natural Resources, Eva Lawler:

“Our natural environment is one of our best assets and it’s a large part of what makes living in the Territory so special.

“It is important that our unique environment and the jobs that rely on it are protected – and that is exactly what this Government is doing.

Media Contact: 

Hannah West (Minister Kirby) 0436 641 108

Ellie Clancy (Minister Lawler) 0436 646 689 

From Minister Eva Lawler

The first Environment Management Plan (EMP) for Onshore Shale Gas Exploration Drilling has been approved in the McArthur Basin, following the completion of 31 recommendations from the Scientific Inquiry into Hydraulic Fracturing required before shale gas exploration and drilling can commence.

The Santos McArthur Basin EP 161 Drilling Program 2019 EMP received 22 submissions as a result of the public consultation process, a process that was implemented by this Labor Government.

Santos revised their EMP following the public consultation process, including the wastewater management plan and spill management plan, ensuring that environmental risks will be controlled and reduced to a level that is as low as reasonably practical and acceptable.

The Territory Labor Government is restoring trust and certainty through the implementation of a robust, clear and transparent set of rules and guidelines around how the environment must be protected in accordance with the recommendations of the Scientific Inquiry into Hydraulic Fracturing and is meeting the principles of ecologically sustainable development.

As part of the decision to lift the moratorium on hydraulic fracturing, new regulations require the Minister for Environment and Natural Resources to publish an EMP for public comment on the Department of Environment and Natural Resources (DENR) website where the activity involves the drilling of a petroleum well or hydraulic fracturing, and the outcome of the decision, including a statement of reasons.

For more information on EMPs under consideration or outcomes of decisions, go to https://denr.nt.gov.au/onshore-gas/environment-management-plan

Quotes from the Minister for Infrastructure, Planning and Logistics, Eva Lawler:

“Our environment is important and the Territory Labor Government understands that it is a large part of what makes living in the Northern Territory so special.

“As a Government, we are restoring trust and certainty through the implementation of a robust, clear and transparent set of rules and guidelines on how the environment must be protected – good environment policy is smart economic policy.

“Providing the community with a legislative right to have their say on an EMP relating to drilling or fracking will help restore trust and transparency - a process that did not exist under the previous CLP government.”

Media Contact: Ellie Clancy 0436 646 689

SANTOS announced today an expansion to its money saving solar plans as its South Australian Port Bonython processing plant, which processes natural gas liquids and crude oil piped from the Moomba plant for export, switched on a 2.12 megawatt solar farm. 

AGL Energy performed the engineering, installation and connection.  

The project will generate three gigawatt hours of power a year, and save Santos 6% of its current electricity use.  

"This solar installation at Port Bonython is our biggest demonstration yet of how we can work with renewables to not only reduce our carbon emissions but to also free up more gas for the domestic markets," managing director and CEO Kevin Gallagher said.  

"As a large industrial user of electricity, we're also doing our bit to reduce the burden on the grid by generating new supply." 

This follows from the battery announcement Santos made with Darwin LNG joint venture partner ConocoPhillips, which is designed to reduce emissions by 20% from the plant as it cuts its fuel gas use.   

The company is still looking at converting its full fleet of Cooper Basin beam pumps to solar for around $50 million, and has also spent $10 million on a closer look at carbon capture and storage.  

"In the Cooper Basin alone we consume for fuel an equivalent of 5% of the east coast market, that's a lot of gas and we're very focussed on freeing that up," he said during a panel discussion on the third day of the conference.  

"It's not just the Cooper, the fuel consumption of our LNG plant is not that dissimilar," he said. 

Rystad Energy's Gero Farrugio presentation at APPEA suggested oil majors in Australia are jumping on the ‘solar coaster', hoping to replace the 15% of gas currently used for infield power with renewables.  

Farrugio put a $70 million figure on possible savings.  

"In Western Australia, we're replacing existing power generation turbines at our Devil Creek plant with more fuel-efficient ones - not only reducing emissions by more than 25% but also generating Australian Carbon Credit Units as a registered project with the Emissions Reduction Fund," Gallagher said today.  

"These initiatives are steps along the way to achieving our goal of net-zero emissions by 2050." 

SANTOS confirmed late yesterday the Barossa field would supply backfill gas the Darwin LNG plant it shares with ConocoPhillips, announcing it had entered exclusive commercial negotiations period in order to reach a processing services agreement and settle on a tariff. 

Santos expects a final investment decision next year.  

Barossa entered front-end engineering and design in April last year, and last month Santos announced the contract to supply the subsea production system and associated installation support had been awarded. 

"This exclusivity confirms the confidence we had to commit to long-lead items last month and maintain project schedule to deliver gas to DLNG as early as possible," Santos managing director and CEO Kevin Gallagher said.  

"Clearly, it also confirms Barossa's status as the lead candidate for the supply of backfill gas to Darwin LNG. 

"Bids have also been received and are being evaluated for the FPSO, gas export pipeline and development drilling. We're getting on with the job." 

Barossa is 300km north of Darwin, and will replace the declining Bayu-Undan field in feeding the plant. That oil and gas field is one of Timor-Leste's main sources revenue.  

Eni's Evans Shoal field was another candidate for DLNG backfill though most have long though Barossa would eventually be chosen.  

The Barossa joint venture is made up of operator ConocoPhillips (37.5%), SK E&S (37.5%) and Santos (25%) and Darwin LNG of ConocoPhillips (57% and operator), Santos (11.5%) Inpex (11%) Eni (11%) and Tokyo Timor Sea Resources (10%).  

The plant is expected to be offline for 18 months or more once Bayu-Undan ceases production and Barossa comes online with a probable start up around 2024. 

CSIRO GISERA release report on wet season baseline methane monitoring in the Beetaloo Sub-basin

CSIRO GISERA (Gas Industry Social and Environmental Research Alliance) has published its third milestone report following its final round of wet season baseline methane monitoring in the Beetaloo Sub-basin.

CSIRO GISERA was engaged by the Territory Government to undertake baseline monitoring of methane concentrations prior to the grant of any exploration permits. This is in line with recommendation 9.3 from the Final Report of the Independent Scientific Inquiry into Hydraulic Fracturing in the Northern Territory.

This milestone report presents the findings of the third methane baseline surveys, which was conducted during the Northern Territory wet season between 30 January and 5 February 2019.

Previous surveys were conducted during the dry season in July and August 2018, and during the fire season in November 2018. Each of the reports is available on the GISERA website.  A Final Report of the baseline survey activity will be completed by CSIRO GISERA in the coming weeks

As with previous surveys, this survey was conducted using two gas analysers mounted in a four-wheel-drive vehicle. The vehicle covered about 4,050 km on roads and tracks which were accessible in the wet season conditions.

Methane concentrations were found to be mostly similar to natural concentrations with an average of 1.84 parts per million. No elevated atmospheric methane emissions were detected near abandoned petroleum wells and water bores that were visited during the first two surveys.

Termite mounds were found to be a seasonal source of methane which contrasts with previous measurements, where no measurable atmospheric methane emissions were detected during the dry season and fire season.

This survey completes the on ground baseline methane monitoring in the Beetaloo Sub-basin for pre-exploration activities. CSIRO GISERA is expected to publish its final report later this month.

Results of these studies are important for delivering on the recommendations of the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory.


To read the latest from the Gas Industry Social and Environmental Research Alliance, please visit https://gisera.csiro.au/

To read the Implementation Plan or access additional information, please visit hydraulicfracturing.nt.gov.au

To read the Inquiry report and recommendations, please visit frackinginquiry.nt.gov.au

Or you can contact the Hydraulic Fracturing Inquiry Implementation Taskforce at hydraulic.fracturing@nt.gov.au

Code of Practice released

The Code of Practice has been released, further strengthening protections for the environment and delivering an accountable and transparent onshore gas industry. 

The establishment of the Code means the majority of the recommendations required for exploration to commence this year have been implemented.

The Code was developed by the Northern Territory Government, working closely with the CSIRO, and peer reviewed by scientific experts from around the world.

The draft Code was out for public comment earlier this year.

The Code mandates enforceable standards and requirements for the onshore gas industry on key issues, including:

• Well operations
  
• Surface activities
  
• Wastewater management
  
• Methane emissions
  

The release of the Code of Practice supports the delivery of the 135 recommendations in the Final Report of the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory.

Read the Code of Practice here

To read the latest from the NTG Newsroom, please visit NTG Newsroom

To read the Implementation Plan or access additional information, please visit hydraulicfracturing.nt.gov.au

To read the Inquiry report and recommendations, please visit frackinginquiry.nt.gov.au

Or you can contact the Hydraulic Fracturing Inquiry Implementation Taskforce at hydraulic.fracturing@nt.gov.au

The Territory Labor Government has finalised the Code of Practice, further strengthening protections for the environment and delivering an accountable and transparent onshore gas industry, which will support Territory jobs.

The Northern Territory Government is implementing all 135 recommendations from the Independent Scientific Inquiry into Hydraulic Fracturing. The establishment of the Code means the majority of the recommendations required for exploration to commence this year have been implemented.

The Code was developed by the Northern Territory Government, working closely with the CSIRO, and peer reviewed by scientific experts from around the world.

A total of 29 substantive public submissions were received while the draft Code was available for public comment.

In response to public submissions, the Code has been revised to make it clear that enclosed tanks are required to be used to store wastewater. The Code has also been made clearer regarding wastewater treatment, evaporation, transport and disposal requirements.

The Code mandates enforceable standards and requirements for the onshore gas industry on key issues, including: 

• Well operations

• Surface activities

• Wastewater management; and

• Methane emissions.

Development of the Territory’s onshore petroleum industry has the potential to generate significant investment in the local economy and create local jobs.

Following the approval of environment management plans, civil works are commencing in the Beetaloo basin, in accordance with the Code of Practice. Copies of approved environment management plans will be available to be viewed here: https://denr.nt.gov.au/environment-information/onshore-gas-in-the-northern-territory/environment-management-plan

Quotes from Minister for Primary Industry and Resources, Paul Kirby:

“With this new Code of Practice, our Government is delivering strong and clear regulation to protect the environment, give certainty for investment, and meet community demands.

“Our Government has a clear plan to protect our environment, create local jobs and ensure the actions of Government and industry are transparent and accountable.

“We expect to see exploration this dry season – so long as the companies have met all the requirements that they need to meet.”

Quotes from the Minister for Environment and Natural Resources, Eva Lawler:

“The Territory’s natural environment is one of our best assets and a huge part of what makes living here so special. Protecting the environment creates jobs — good environmental policy, is smart economic policy.

“We are restoring trust and certainty through the implementation of a robust, clear and transparent set of rules and guidelines for how the environment must be protected.”

“These reforms will strengthen governance and accountability for environmental decisions, providing greater certainty for business and the community.”

Media contacts: Carl Pfeiffer 0417 910 720 (Minister Kirby), Ellie Clancy 0436 646 689 (Minister Lawler).

Shell, along with its Joint Venture Partners INPEX, KOGAS and OPIC, today announced that the first shipment of Liquefied Natural Gas has sailed from Shell’s Prelude Floating Liquefied Natural Gas (FLNG) facility located 475kms North East of Broome in Western Australia. This shipment will be delivered by the Valencia Knutsen to customers in Asia.

Maarten Wetselaar, Integrated Gas and New Energies Director said: “Today’s first shipment of LNG departed from Prelude FLNG, safely. Everyone involved should be very proud of the work taken to reach this important milestone.

“Prelude forms an integral part of our global portfolio and plays an important role in meeting the growing demand for more and cleaner energy for our customers around the world.”

Zoe Yujnovich, Chairman Shell Australia said: “Prelude FLNG combines human endeavour and ingenuity from across the globe and here in Australia. We are proud to work with our local communities, suppliers and partners to ensure its safe, reliable operations into the future.”

www.shell.com.au/prelude

A message from Smart Energy NT:

SmartEnergy NT Action Alliance

3pm- 6.00pm Thursday June 20

ABB, 54 Export Drive East Arm Berrimah

If you would like to attend please go to Sticky Tickets to register. www.stickytickets.com.au/87616

We are please to advise that in conjunction with Environment Centre NT we will be having the public launch of the Beyond Zero Emissions Report: "The 10 Gigawatt Vision: How renewable energy can power jobs and investment in the Northern Territory", Speakers Eytan Lenko and Vanessa Petrie - BZE. Following the presentation we will be forming the four groups listed below to work on projects to achieve our goals.

SmartEnergy NT Policy Group will be formed to explore ways to achieve our goals and then create policy suggestions and form alliances with like minded groups such as RepowerNT. This Group will be led by Alan Langworthy who was the chair of the Roadmap to Renewables committee.

SmartEnergy NT Technical Group will be created to search the world for technical solutions to create stronger grids and microgrids with the goal of producing technology the will assist us in the NT and give us the opportunity to export the technology elsewhere in Australia and overseas.

We are fortunate to have a wonderful facility which specialises in Microgrids for ABB right here in Darwin with research and testing facilities which are world glass. This group will be led by Juergen Zimmermann from ABB who is a passionate Territorian who has the strong technical knowledge to lead this group.

SmartEnergy NT Hydrogen Group will be formed in response to the strong interest shown following our event on April 10 when the Chief Scientist for Australia, DR Alan Finkel, spoke on the medium and long term opportunities for hydrogen in the NT.

With Japan and Korea already committed to becoming Hydrogen economies and our gas already being exported to these countries the NT is in an ideal position to produce Green Hydrogen (fully renewable generated) to these countries and others. On the local scene it was agreed there are opportunities to develop ‘inspirational’ and development Hydrogen project here now. This could be particularly so where high cost diesel is the present way to generate power.

Repower NT Working Group to advocate for the recommendations within the BZE report and to work with the 3 other groups to create a powerful voice for the 10 Gigawatt Vision.

Join Now – Everyone Welcome – Help make a difference

You can now join the SmartEnergy NT Action Alliance and become part of the solution to develop practical ways to build our solar and Smart Energy footprint. This will allow business and consumers to reduce their power cost and facilitate smarter ways to integrate solar energy with the grid. You can join the SmartEnergy NT Action Alliance for as little as $100 by going to https://smartenergynt.com.au/membership/

For further information please call Geoff Goodrich on 0419 906524 or email geoff.goodrich@smartenergynt.com.au