Concern has bee raised around a gas deal meant to secure the NT’s energy future.

The Northern Territory Labor Government has signed a deal with Tamboran Resources to ensure a supply of gas from the Beetaloo Basin. 

This agreement is part of the government’s strategy to bolster its on-shore gas industry.

The deal should see the Northern Territory government receive gas at competitive rates for an initial nine years, with an option to renew for an additional six-and-a-half years. 

The commencement of gas delivery to Territory power generators is anticipated by the first half of 2026, if Tamboran can secure the necessary pipeline access and the requisite permits and approvals.

The NT Government expects the project to boost the economy by $17 billion and the creation of thousands of jobs, enhancing employment opportunities across the Territory.

However, the deal has not been without its critics. 

Industry representatives and experts have raised concerns about the lack of transparency and competitive tendering in the process. 

Leon Devaney, CEO of Central Petroleum, has expressed disappointment over being sidelined in the bidding process, highlighting the need for a more open and competitive approach.

Tom Quinn, an energy analyst from Springmount Advisory, has criticised the deal's timing and the government's decision-making process, especially given the project's pending final investment decision and environmental approvals. 

Environmental groups and First Nations representatives have also voiced their disapproval, labelling the deal as risky and inconsistent with global environmental commitments. 

Kirsty Howey, director of the Environment Centre of the Northern Territory, has described it as “disgraceful and risky”, and says she is concerned about the premature nature of the government's announcement ahead of necessary environmental approvals.

Despite the controversy, Tamboran Resources remains optimistic about the deal's positive impact on the Territory's energy security and economic future. 

Joel Riddle, the company’s CEO, expressed pride in their long-term commitment to providing gas, saying; “This is a transformational development for Tamboran and our partners, after 10 years of hard work and more than A$500 million invested in Beetaloo exploration and appraisal activities”.