Australia: Northern Territory Government Inks Gas MoU

The Commonwealth Government and Northern Territory Government have signed a Memorandum of Understanding (MOU) which takes an important step towards ensuring the Northern Territory’s gas supply is secured for the future.

“This MOU is an important means to help promote the Northern Territory’s future economic prosperity,” Resources and Energy Minister Gary Gray said.

“Both the Commonwealth and the Northern Territory Governments recognise the critical importance of supporting the Territory to achieve its full economic potential and we are determined to play our part in facilitating an effective outcome.”

The Chief Minister of the Northern Territory, Adam Giles, said gas to Gove would further encourage investors who choose to do business to develop Northern Australia.

“Onshore gas exploration is speeding up and the potential in the Territory is remarkable,” Mr Giles said.

“The Territory needs to be known as a safe, free-market jurisdiction and a place to do business.

“Businesses and government can achieve mutually desirable goals, provided businesses are willing to invest.

“The MOU focuses on ensuring that gas resources are sustainably developed in the national and community interest.”

Effective immediately, the MOU will underpin an active and co-ordinated approach to promoting the exploration and timely development of offshore and onshore gas resources. Its objectives are:

• To ensure long term secure gas supply for the Northern Territory, in particular to facilitate the supply of gas for domestic and commercial use for all customers in the NT, including Rio Tinto’s Gove Alumina refinery;
• To reduce the risks associated with gas supply security in the Northern Territory due to exploration and development not meeting demand; and
• To encourage competition between gas suppliers for the benefit of consumers and thus avoid an artificial or distorted gas market within the Northern Territory.

“Businesses and communities need certainty of energy supply and a competitive energy market if they are able to prosper into the future. Today’s announcement is an important step towards delivering greater energy certainty to all Northern Territorians,” Mr Gray said.

“Importantly, the MOU recognises that both Governments have important roles to play in the exploration, development and production of new gas resources. A successful partnership is vital if we are to ensure the Northern Territory can continue to benefit from these resources and stimulate local and regional economic development accordingly,” he said.

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LNG World News Staff, May 30, 2013