An ambitious growth agenda means diversification, the realisation of major projects, and attracting new private sector investment. With the Territory's world-class energy resources are one of our strongest areas of competitive advantage, we're harnessing our opportunity to future-proof industry development with a net-zero emissions future.
We're open for business and ready to connect you with the Territory’s leading decision makers to make things happen.
Why invest in the Territory
The Territory has world-class gas resources, with proven reserves offshore and highly-prospective shale gas resources onshore.
Exploration of the onshore Beetaloo Sub-basin indicates a shale gas resource of 500 Trillion cubic feet of gas (P50 gas-in-place resource as estimated by industry). Others have tipped larger gas reserves on a scale exceeding the North West Shelf or existing Marcellus shale gas fields in the United States. Offshore, an estimated gas reserve of 30 trillion cubic feet also presents exciting new opportunities.
The Territory is already home to renowned major projects, including our fully established and globally significant Liquefied Natural Gas (LNG) export hub. Our export hub is Australia’s third largest LNG producer, supporting Australia’s 2020 crown as the largest LNG global exporter, with the Darwin LNG and Ichthys LNG projects supplying over 10 per cent of Japan’s and Taiwan’s annual global LNG imports.
With opportunity sites available for five additional LNG trains, there are boundless new investment opportunities as the Territory continues to drive energy security for Australia and its strategic partners throughout Asia, and meeting global demand for cleaner, affordable transition fuel sources.
Situated on a world‑class harbour and proximate to rapidly growing markets throughout Asia, Darwin is also home to an educated and highly-trained workforce ready to service growth in the oil and gas industry.
Federal Budget funding announced in 2022 is accelerating some of the Territory’s largest projects with investment in marine, road and rail infrastructures, with:
- a $1.5 billion investment in marine infrastructure for the Middle Arm Sustainable Development Precinct. This includes the building a modular offloading facility (MOF) and common user wharf, as well as widening the shipping channel for port access to the precinct.
- an additional $200m to deliver land based components including upgrades to roads, building a rail spur through the Middle Arm Sustainable Development Precinct and the development of a new road network for the industrial subdivision.
- a $300m investment driving the development of a carbon capture and storage hub to realise low emissions manufacturing and clean hydrogen production within the precinct.
- $440 million to build new logistics hubs at Alice Springs, Katherine and Tennant Creek to facilitate expanded export activity.
- a $300 million investment for the Darwin Regional Water Supply Program.
In addition to the Northern Territory specific projects, the Australian Government announced $1.0 billion in additional funding for the Modern Manufacturing Initiative, with $750M to support transformational manufacturing projects and catalyse private sector investment in Australian manufacturing.
Territory gas-led growth opportunities
Harnessing the Territory’s exciting onshore and offshore resources brings significant opportunities to diversify and grow gas-based sectors including liquefied natural gas (LNG) export expansion, establishing new low emissions gas-based processing and manufacturing sectors with additional opportunities through pipelines and infrastructure, and the service and supply sector.
-
As part of our sustainable gas-led growth journey, incorporation of a local carbon offset industry and decarbonisation innovations is vital.
Collaborative planning is underway to develop a business case to assess the viability of a large-scale low emission Carbon Capture Utilisation and Storage (CCUS) Hub based in the Territory, with the potential to be one of the largest of its kind in the world.
The business case will be supported by detailed reports and techno-economic models, to chart the development of the Hub and enable key investment decisions to be made.
CCUS planning follows a 2020 study commissioned by the Global Carbon Capture and Storage Institute. The study proposed CO2 waste from future low emissions gas-based processing and manufacturing could be captured, compressed and transported to a geological storage resource located in the Petrel Sub-basin, with storage capacity in excess of six giga tonnes.
The study indicates that compression, transport and storage of CO2 could be achieved for approximately $41-$53 per tonne, with opportunities to reduce this further and the potential to be a world-class reservoir.
The 2022 Federal Budget committed $300m to accelerate development of a carbon capture utilisation and storage hub to realise low emissions manufacturing and clean hydrogen production in the Territory.
With abundant energy, natural gas and solar resources, vast subsurface carbon dioxide (CO2) storage capacity and proximity to international markets, Darwin is a natural fit for this investment.
Find out more about the carbon offset industry in the Northern Territory.
-
Future-proofed opportunities are fast emerging for low emissions gas-based processing and manufacturing investment with prioritised development of the Middle Arm Sustainable Development Precinct.
The gas-based processing and manufacturing precinct will focus on low emission petrochemicals, renewable hydrogen, carbon capture utilisation and storage and decarbonisation initiatives.
With increasing demand for carbon neutral products and supply chains, the precinct presents significant sustainable investment opportunities with land parcels already available across the 1500 hectare precinct.
The Territory has all the ingredients to support a low emissions gas-based processing and manufacturing precinct, with:
- untapped proven gas reserves offshore and a world-class shale gas resource onshore
- highly prospective geological storage to sequester carbon dioxide emissions
- critical minerals reserves including copper, lithium, vanadium, rare earths, tungsten and cobalt
- access to renewable energy sources
- established construction, logistics and operations capability
- proximity to international markets.
We're leading precinct development through master planning and have teams of people focused on planning, commercialisation and infrastructure requirements to:
- secure competitively priced feedstock, offtake agreements and critical input access.
- develop a contemporary industrial ecology incorporating a carbon capture storage (CCS) hub and renewable power.
- drive expanded enabling infrastructure, including marine infrastructure, such as modular off-loading and common user facilities and land based infrastructure such as roads, drainage, power, water and telecommunications services.
- accelerate land access and availability planning, environmental impact assessments, stakeholder engagement and access to critical enablers such as water.
- deliver independent studies and development business case.
- engage with industry and investors.
Environmental considerations are paramount in master planning. Baseline investigations are underway, including identifying the diversity of plants and animals, marine environmental assessments and air and water quality data to inform planning to safeguard the Territory's unique environment.
Federal Budget funding announced in 2022 committed $1.5 billion investment in marine infrastructure including a modular offloading facility (MOF) and common user wharf, as well as widening the shipping channel for port access to the precinct. An additional $200m was committed to deliver land based components including upgrades to roads, building a rail spur through the precinct and the development of a new road network for the industrial subdivision.
With land now available and sustainable master planning well advanced, business can invest today knowing the Territory is committed to future-proofing development that supports our global transition to a zero emissions future.
-
Our fully established and globally significant Liquefied Natural Gas (LNG) export hub is Australia’s third largest producer, supporting Australia's 2020 crown as the largest global exporter of LNG.
The Darwin LNG and Ichthys LNG projects supply over 10 per cent of Japan's and Taiwan's annual global LNG imports. These facilities operate three LNG trains with a combined production capacity of 12.6 million tonnes per annum. Brownfields sites are now available for five more LNG trains.
Further exploration works to prove‑up the Territory's highly prospective resources bring significant LNG export expansion opportunities, will propel low emissions gas‑based processing and manufacturing and natural gas supply opportunities to industrial and retail customers in eastern Australian markets. Industry projections anticipate most exploration will be finalised by 2023 and the Australian Government is working to support accelerated final investment decisions by 2025 or earlier.
Harnessing the Territory’s natural gas resources to secure new LNG export markets presents more than just increased revenue prospects. Territory gas, as a low-carbon energy source is also the launch pad for the emerging local sustainable gas-based processing and manufacturing sector.
-
Significant onshore commercial gas production prospects are under exploration in the Beetaloo Sub-basin to prove‑up this new gas region.
Opportunities exist for companies to partner with junior to mid-tier onshore petroleum explorers to bring these resources in to production.
The highly prospective resources are being compared to the highly productive Marcellus Basin in the north east of the United States, and there are other layers and basins yet to be explored. Industry analysis projects that development could:
- produce 6,000 jobs by 2040.
- increase economic activity between $18.0 billion and $36.8 billion over the same period.
- spur significant downstream manufacturing opportunities.
- deliver cheaper and more reliable gas to households and industry.
- provide an additional source of gas for Liquefied Natural Gas (LNG) export facilities.
Exploration and appraisals continues to show encouraging results. Industry analysis suggests that most exploration will be finalised by 2023 and the Australian Government is working to support accelerated final investment decisions by 2025 or earlier.
View the 2019 Analysis of infrastructure and logistics requirements for the development of an onshore oil and gas industry in the Northern Territory report.
-
Renewable energy is a key priority for the Territory Government, pursuing 50 per cent renewables for electricity supply by 2030, while maintaining secure, reliable and least-cost electricity for consumers and taxpayers.
As we drive towards our targets, opportunities will exist for new large-scale renewable generation and energy storage in the Darwin-Katherine power system.
The Territory has the largest multi-technology solar demonstration facility in the southern hemisphere located in Alice Springs at the Desert Knowledge Australia’s Solar Centre. Desert Knowledge Australia is also home to the Intyalheme Centre for Future Energy. This renewable energy hub has been established to share knowledge, educate and engage with the community, and facilitate industry partnerships and technology commercialisation.
With less than 10 per cent of electricity supply from renewables, there are significant investment opportunities to drive our journey of transitions to renewables. The Roadmap to Renewables policy supports new opportunities for the renewable energy industry to grow in the Territory.
