Tamboran Resources has started producing fracked gas from the Beetaloo Sub-Basin in Australia's Northern Territory, eight years after a moratorium was lifted, with the NT government praising the project's economic potential while environmental groups and Indigenous leaders express concerns over climate impact and benefit distribution.
AI-generated summary
The Northern Territory lifted a fracking moratorium eight years ago, enabling Tamboran Resources to develop the Beetaloo Sub-Basin. The project has been promoted by the NT government as a path to economic stability amid high net debt, while facing opposition from environmental groups over climate impacts.
Out on an outback gas field, a US-backed gas company boss with a strong American drawl speaks about how good it has been to work with the Northern Territory government.
"People have heard me say many times that this is the most supportive government I've ever worked under, and that includes Texas," said Todd Abbott, the managing director of Tamboran Resources.
"They set the bar very high for our standards, and they give us every resource to get over it."
The speech was celebratory — Tamboran Resources was welcoming the milestone that, after years of development, the company had begun producing fracked gas from the Beetaloo Sub-Basin.
The so-called appraisal gas, or pilot gas, began flowing into the NT energy grid and powering NT homes and businesses from this week, eight years after a Territory fracking moratorium was lifted.
"The Northern Territory government has supported us so much to get to this point, and it's appropriate that they get the first fruits of the work," Mr Abbott said.
Beetaloo will 'literally change the future'
The NT government is proudly vocal about its commitment to the onshore gas industry, and has not been shy about dialling up the rhetoric around its possible impact for Australia's energy security future.
Chief Minister Lia Finocchiaro said her government had "stared down the hypocrites" in bringing the Beetaloo online, a project she said would provide "certainty, stability and affordability above all else".
"Today there is going to be a project that is going to literally change the future of the Northern Territory's economy," she said at the Beetaloo site, around 600 kilometres south-east of Darwin.
As the NT government faces around $12 billion in net debt, for a population of around 250,000 people, the prospect of private investment and energy grid stability has been warmly welcomed by the cabinet.
For years, the government has been relying on emergency gas supplies to cover a shortfall.
The announcement of the gas being turned on flowed directly into NT Resources Week in Darwin, which also saw other firms announce plans and ambitions surrounding the Beetaloo gas reservoir.
Among them, energy infrastructure firm Jemena announced it would apply for a permit to build a 400km pipeline to connect existing pipeline infrastructure directly to the Beetaloo.
Jemena managing director David Gillespie said the company believed Beetaloo gas could "become a really important and significant part of the overall energy solutions for the country".
Fracking shows deep rifts in Australia
Exactly what that economic impact will add up to is being heavily scrutinised by environmental groups and left-wing politicians, who have come out fiercely in condemnation of the development.
The Australian Greens put out a statement describing the Beetaloo as a future "climate bomb".
"Independent analysts have rejected claims that Beetaloo gas will be a silver bullet for Territory jobs and industry," Australian Greens senator Steph Hodgins-May said in a statement.
"That's spin from an industry looking to get rich off gas."
The NT government has claimed that full development in the Beetaloo could generate $17 billion "in economic value" over the next 20 years.
Environmental groups believe the likely reality will be far less.
Whatever benefits the Beetaloo ends up bringing for the Australian energy market and regions, some of the billions expected to be earned from the development will undoubtedly also end up offshore.
Companies like Jemena, backed by its major shareholders in China and Singapore, is certainly not solely in the game to charitably assist the flagging NT economy.
Others on the ground are optimistic the company and the government aren't spinning false figures.
Jingili-Mudburra native title holders hope the Beetaloo brings jobs and royalties for their people.
Native title holder Rosemary Raymond described her remote home of Elliott as a "forgotten town".
"There's nothing there, there's no future," she said.
She was asked at a press conference at the Beetaloo what she thought about the calls from green groups based in Sydney and Melbourne for the Beetaloo project to be shut down.
"Nup — it's our land, it's our statement to say, we need a better future for our children," she said.
"Don't care what the Greens say; it's our decision, and this is our land."
The Beetaloo's long-standing critics would argue that it is still largely undetermined how much in benefits will go to the native title holders from the Beetaloo during the project's lifespan.
It's an argument not likely to be settled quickly.
Now that Beetaloo gas has begun to flow, on one side of the fence there's elation, and on the other, bitter disappointment and frustration.
The start of fracking in the NT has shown that some fractures in Australian society remain as deep as ever.
AI outlook — possibilities, not facts
The Northern Territory government will receive increased royalty revenue from Tamboran Resources as Beetaloo gas production scales up.
Likely · Within months
Environmental groups will continue to oppose and legally challenge further expansion of fracking in the Beetaloo Sub-Basin.
Very likely · Within months
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