The Northern Territory Government has today approved a Beneficial Use of Gas (BUG) application for Beetaloo Energy Australia, allowing for recovery and sale of appraisal gas under s57aaa of the Petroleum Act (1984).
The Government said the approval marks a significant step forward in the development of the Beetaloo Sub-basin for gas production and follows Tamboran’s approved BUG Agreement with Native Title holders earlier this year.
“This is a major milestone in the development of the Beetaloo,” said Minister for Mining and Energy, Gerard Maley.
“Gas that would previously have been flared will instead flow directly into the local market from next year.”
The Government has previously signed binding gas sales agreements with Tamboran for the first supplies from the Beetaloo.
It says both agreements should provide for enough gas required to power essential services across the Territory and sales under both agreements will deliver the first Beetaloo gas royalties for the Territory.
The BUG approval also allows Beetaloo Energy to commence construction of its Carpentaria Gas Plant that will process gas and transmit it into the McArthur River Pipeline for use in the Territory Gas Market.
“Gas from Beetaloo Energy’s Carpentaria Pilot Project is critical for the Territory and today’s announcement provides the certainty for not only increased energy security, but further investment and development by Beetaloo Energy,” said Mr Maley.
“Today’s approval for Beetaloo Energy is the first BUG approval on Aboriginal Freehold land in the Northern Territory and demonstrates how Traditional Owners support the development of the gas industry.”
Beetaloo Energy Managing Director, Alex Underwood said the recent agreements with Traditional Owners and the NT Government would enable the company to provide affordable, reliable energy and generate royalties for the benefit of all Territorians.
“We are grateful to Traditional Owners and the Government for their support of our project and are committed to working with landowners and local communities to share the economic and social benefits of the development of the Beetaloo’s abundant natural gas resources,” Mr Underwood said.
