The Northern Territory budget handed down today recognises the growing importance of natural gas to the NT economy, the Australian Petroleum Production & Exploration Association (APPEA) said in a statement.
APPEA’s Chief Operating Officer of Western Region Stedman Ellis said: “ The contribution of natural gas to the development of the Northern Territory has never been clearer. ”
“ The Territory is experiencing the strongest growth of any Australian economy due largely to construction activity related to INPEX’s $33 billion Ichthys LNG project in Darwin .
“ The flow-on benefits to other sectors of the NT economy, such as retail, housing, transport and manufacturing, has boosted own-source revenue for the NT Government and contributed to significantly improved budget outcomes. ”
Ellis said the Territory Government had also recognised the potential of onshore gas projects to generate economic growth and jobs.
He said a new $8 million program to assess shale gas resources in the Territory could trigger significant exploration activity in remote and regional areas.
“Shale gas has the potential to be a significant new driver of economic activity in the Territory and the Giles Government is to be congratulated for encouraging the industry’s development, ” Ellis said.
“ Not only could shale gas deliver jobs, economic growth and improved infrastructure in remote and regional areas, it would also provide the NT Government with a new source of revenue independent of the Commonwealth.
“ This is a potential game-changer for the Territory, which currently relies on Commonwealth funding for around 70 per cent of its annual budget. ”