Department of the Legislative Assembly, Northern Territory Government

Mr BARRETT - 2014-05-13

Can you outline what the Northern Territory government is doing to help supply gas to generate power in the Northern Territory, and update the House on how this government is committed to developing the Alice Springs region?

ANSWER

Madam Speaker, I thank the member for Blain for his very important question. I am passionate about this stuff. We in parliament ask ourselves from time to time why we are here.

I saw the students in the gallery this morning; they are the reason we are here. This government is all about driving the economy of the Northern Territory to create a place and environment where they can grow up in the best part of Australia. That is what we are here to do.

That is why I am very passionate talking about the oil and gas industry, because I believe incrementally, over time, this will be an enormous industry for the Northern Territory. It will make this place a wonderful environment to live and work in.

Ms Walker: You could have doubled the gas market if you had not reneged on the deal to Gove.

Mr WESTRA van HOLTHE: I know the opposition does not want to hear all of this good news, but it is good. That is why I was delighted to be with the Chief Minister in Alice Springs the other day as he turned the sod on Central Petroleum’s new $20m Dingo Gas Field development at the Brewer Estate.

In February this year, Central Petroleum purchased Magellan Petroleum Corporation’s onshore Australian assets, including the reserved certified Dingo Gas Field in the Amadeus Basin. The gas field is located about 50 km south of Alice Springs.

Central Petroleum is planning to develop this gas field for production and treatment of raw gas pipeline sales, and quality and delivery of sales gas to customers.

Central Petroleum has a gas supply and purchase agreement with the Northern Territory Power and Water Corporation to develop the Dingo Gas Field and sell sales-quality gas for power generation at the Owen Springs Power Station on the Brewer Estate located near Alice Springs.

The Dingo Gas Field development will consist of a field gathering system connecting the Dingo Gas Field wells — there are four of them currently; two are in the position of producing and two others which need some work — to a central processing plant with a 45 km pipeline from the Dingo field to the City Gate Gas Treatment Facility at Brewer Estate.

Central Petroleum is looking to invest around $20m to get the project running, including $11m for the construction of the pipeline and $9m on upgrading the field. This is only the second onshore production licence that has been issued in the Northern Territory in 32 years. That tells me that the gas industry here finally has some confidence that the Northern Territory government is heading in the right direction.

After 11 years of directionless travel under the Labor government which saw virtually no development of the gas industry in the Territory, finally the industry has recognised that this is the place to do business.
Last updated: 09 Aug 2016