The Northern Territory Government is growing gas production, royalty revenue streams and attracting greater private investment as part of its commitment to rebuild the Territory’s economy.
Gerard Maley, Northern Territory Deputy Chief Minister recently toured the Mereenie gas facility in Central Australia, accompanied by executives from Central Petroleum, Echelon Resources and Horizon Oil Limited.
The Mereenie Joint Venture (JV), operated by Central Petroleum in partnership with Echelon Resources, Horizon Oil Limited and Cue Energy, demonstrates the long-term viability and economic value of onshore gas production in the Territory by providing years of energy security, royalty revenue and local employment to Territorians.
The Mereenie gas field has been in operation for around 40 years, providing vital energy to Territory homes and businesses.
As the Territory’s primary onshore gas producer, the Mereenie JV has demonstrated a longstanding commitment to local employment and has generated millions in royalty revenue and supported local Northern Territory supply chains.
Typically, the Territory begins receiving petroleum royalties once a company moves from the exploration and appraisal phase through to production, with the granting of a production licence.
Alternatively, if a company receives a Beneficial Use of Gas or ‘appraisal gas’ approval while holding an exploration permit or retention licence and they subsequently sell the appraisal gas, then royalties are payable to the Northern Territory.
Each year, Central Petroleum and its partners pay royalties to both the Northern Territory Government and the Central Land Council.
Recent drilling of the West Mereenie 29 and 30 wells has exceeded expectations, with Central Petroleum and partners recently supplying about 30TJ of gas to the Northern Territory market per day, which is about half of the Territory’s daily gas demand.
Minister Maley also visited the Inpex Ichthys LNG processing facility at Bladin Point, which represents one of the largest private investments ever in the Northern Territory, valued at about $60 billion.
“The Mereenie and Ichthys projects symbolise the scale and significant opportunity afforded to the Territory by our gas industry,” he said.
“The Northern Territory Government promised 2025 would be a year of action, certainty and security, and these operations are not only driving energy security, but they’re creating jobs and opportunities for Territorians.”
Inpex is preparing for a planned maintenance shutdown from late August to October 2025, at an estimated cost of over $300 million, to lay the groundwork for future expansion and emissions reduction initiatives.
This will result in an additional 1000 workers at the Ichthys LNG facility and 22 local contracts, providing opportunities for Territory businesses.
INPEX – operator of the Bonaparte Carbon Capture and Storage Venture – with partners TotalEnergies and Woodside Energy, announced the commencement of preliminary front-end engineering design work to develop the Bonaparte CCS Project in the Bonaparte Basin, about 260km offshore to the west of Darwin.
The Territory Government said it is a critical milestone in the development of Darwin as a low-emissions and decarbonisation powerhouse, with Inpexs Ichthy’s LNG project to be the anchor customer for the Bonaparte CCS project, which is capable of storing up to 10Mt of carbon dioxide per annum.
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