Sam McMahon (NT, Country Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Resources and Northern Australia. Could the minister update the Senate on any recent developments that could deliver further development of the gas industry and support local communities by ensuring long-term gas supply?

Matthew Canavan (Queensland, Liberal National Party, Minister for Resources and Northern Australia) Share this | Link to this | Hansard source

I thank Senator McMahon for that question and recognise her strong interest in seeing the Northern Territory develop. I know, as a regular traveller to the Territory, that it has been a difficult couple of years there, particularly in Darwin, with the wind-down of the very large INPEX project. The federal government is doing everything we can to bring new investment to the Northern Territory and more job opportunities there.

That's why it is great news that last week the Northern Territory government provided its first approvals for drilling in the Beetaloo Sub-basin, which is a part of the larger McArthur Basin. It is one of the most exciting resource opportunities in the nation. It is very exciting because it is Australia's first major shale, oil and gas project in Australia. Many would of us would have seen the great opportunities that have been provided in the United States as a result of the development of their shale resources. We have not yet developed any major shale resources here in Australia, but this first one could be very exciting for our nation. Our geologists estimate that the Beetaloo Sub-basin is as big as the Permian Basin in Texas, which has underpinned their resource development. While there is still a lot of work to be done in exploring and assessing the quality of this resource, a lot of people are very excited.

It is great to see the Territory government doing that. It has great opportunities not just for the Northern Territory as a whole but also for local industries in this region, around that area and around the Daly Waters area. I caught up with the Northern Territory Cattlemen's Association this week, who I think are in the gallery today. I see Chris Nott from the NTCA. We will need to make sure that any investment that comes from this exploration also benefits that industry as well, in terms of better infrastructure, greater opportunities, more jobs, a greater critical mass in our Northern Territory and cheaper energy as well.

Sam McMahon (NT, Country Liberal Party) Share this | Link to this | Hansard source

What is the gas potential of the Northern Territory? How will this important industry create more jobs in the Top End?

Matthew Canavan (Queensland, Liberal National Party, Minister for Resources and Northern Australia) Share this | Link to this | Hansard source

People who are smarter than me have estimated that something like 178,000 petajoules of gas is potentially there in the Beetaloo Sub-basin. What does it mean? To lay people like myself and probably most of the people listening or watching at the moment, that means there is around 200 years of supply. Around 200 years of east coast supply is potentially there in the Beetaloo Sub-basin. It is a huge resource. Estimates are that there would be something in the order of 6,500 jobs. It would have a real income impact of $2.8 billion for the Northern Territory and around $9 billion Australia for a whole. I want to play up here that it is not just the benefits to the Northern Territory. There are potentially liquids in the basin as well. We haven't really exploited a major liquid fuel basin since the Bass Strait in the 1960s. We have declining liquid fuel security. Opportunities like this are essential to help us secure our energy needs for Australia and secure the safety of our nation as well.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator McMahon, a final supplementary question?

Sam McMahon (NT, Country Liberal Party) Share this | Link to this | Hansard source

What more can be done to meet Australia's long-term gas needs and reduce gas prices for Australian households and businesses?

Matthew Canavan (Queensland, Liberal National Party, Minister for Resources and Northern Australia) Share this | Link to this | Hansard source

The best thing that can be done is to get more supply. If we want to get energy prices down we have to get more supply of gas, electricity, or whatever the particular target may be, and that's what I'm focused on as resources minister to increase supply of these resources. That is why the federal government has supported the development of the Beetaloo Basin with an $8.4 million investment to help facilitate the approvals and ongoing works there in that region, that's something we announced in the last few months.

We have also signed a memorandum of understanding with the Northern Territory government to make sure we work together in the development of this resource for the benefit of Australia. In particular, we would love to see the development not just of a oil and gas industry onshore in the Northern Territory, but also the use of that oil and gas in places like Darwin where there's enormous potential to grow a manufacturing industry, with the fantastic Asian-facing port they have there in the Northern Territory. It's a very exciting development and the federal government is working in lock step with Northern Territorians to see development in their interests.

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

I ask that further questions be placed on the Notice Paper.