Department of the Legislative Assembly, Northern Territory Government

Mr HIGGINS - 2014-10-30

The Territory has a growing reputation as a gas supply and processing hub. Can you update the Assembly on exciting advances with Shell’s Prelude supply base at East Arm?

ANSWER

Madam Speaker, I thank the member for Daly for his question. The parliamentary secretary for northern Australia is very keen to see the development and growth of northern Australia as a gas supply and service centre. He is complimentary of the way the Northern Territory Country Liberals government has brought Shell to Darwin to be part of the centre for the supply base.

I had an opportunity to meet with officials from Shell yesterday and talk about what that means and how we can develop local content. The biggest things that came out of the conversation yesterday were about making sure it is all about local content, how we can build the capacity within Darwin to respond to the needs of Shell, particularly through its floating facility coming soon at Prelude, and how we can make sure we increase the rates of Indigenous employment through Shell operations. Later today I will be officially opening the Shell service centre at East Arm. That service centre will only employ around 20 people because it is not the place where the work is done. It is a coordination site for many services which will be provided to the floating Shell facility.

Shell also said that with our government’s desire to see a greater level of gas come on board in the Northern Territory, particularly deposits such as Petrel, Tern and Frigate out of GDF SUEZ and Poseidon and Lasseters with ConocoPhillips and Santos, there is a greater opportunity for economies of scale in servicing through a supply base than through some of the rig tender work going out of East Arm to some of those areas. The Shell Prelude facility is a great start. We will see what happens with things such as the Woodside facility. We are opening negotiations again very soon in regard to Greater Sunrise and potentially talking about things like Abadi, which is in Indonesian waters, and how we can service that from a Northern Territory point of view. We are advancing …

Ms Lawrie: A great Labor project.

Mr GILES: Can you please be quiet? We are advancing …

Mr McCarthy: The truth hurts.

Mr GILES: … Darwin in terms of its logistical supply base. It is about jobs going forward into the future.

Ms Lawrie: It is fantastic we have a Marine Supply Base.

Mr GILES: I note the negative interjections coming from the other side. I cannot pick them up, but I hear mumbling about the Marine Supply Base. Let us look at the Marine Supply Base; I will go through the costings another day to see how you put Territory finances at risk. The Marine Supply Base is a port facility owned by the Territory government, signed to a company based out of Aberdeen, Scotland under a long-term lease.

The Leader of the Opposition will say you cannot have long-term leases on the port. They signed up to a long-term lease on the port. It is six of one, half-a-dozen of the other. What is the go here? You supported one when you were in government, but not when we are. You must have equalisation in the way your decisions are made here. You created a long-term lease for the Marine Supply Base. We are supporting it, we have delivered it and we are making sure we can now set that up as a service centre for Darwin.

Madam SPEAKER: Chief Minister, your time has expired
Last updated: 09 Aug 2016