Santos could begin new drilling for gas in the Northern Territory's Beetaloo basin within weeks after the Finocchiaro government granted approval for up to 12 wells. The decision, published late last month, has prompted calls from environment groups for the federal environment minister, Murray Watt, to use his powers to assess the development's potential effects on water and threatened species under national nature laws.
Environmental Concerns
Environment Centre of the Northern Territory (ECNT) executive director Kirsty Howey expressed concern that the project is a gateway to full-scale fracking in the territory after years of relatively slow development in the Beetaloo region south of Katherine. She warned it would add to the climate crisis. The Territory chief minister, Lia Finocchiaro, told a recent industry conference she was pleased some projects in the basin were getting closer to production and that Territorians were excited at the prospect of powering their beer fridges with Beetaloo gas.
Project Details
Santos' project at Tanumbirini Station, a 5,000 sq km cattle station where it has existing exploration wells, would involve 12 new appraisal wells. Appraisal wells are drilled to assess the quality and commercial potential of the gas resource. At full production, fracking projects can involve dozens, hundreds or even thousands of wells. A company spokesperson confirmed Santos planned to begin drilling in the second half of the year, with the month still to be determined.
Chief executive Kevin Gallagher told investors last week Santos was prioritising its Beetaloo operations ahead of some other domestic projects and considered its acreage in the region a phenomenal resource that could supply the east coast market for more than 50 years.
Calls for Federal Assessment
The ECNT and the Australian Conservation Foundation called for the project's impacts on the environment to be assessed under national nature laws. Howey stated that Minister Watt needs to ensure Santos' largest ever fracking plan is assessed under federal environment laws, considering impacts on waterways like the Hot Springs Valley and species such as the critically endangered northern blue-tongue skink and the endangered Gouldian finch. ACF climate campaigner Meg Good said gas damages the climate and the local environment, pointing to a 2023 analysis by Climate Analytics that found fracking across the Beetaloo could lead to 1.2 billion tonnes of greenhouse gas emitted over 25 years.
Economic Analysis
Separate modelling by energy consultancy Springmount Advisory, commissioned by the two groups, examined the potential cost of gas from the Beetaloo basin generally. It found gas from the region could be up to two-and-a-half times more expensive than gas from existing Queensland fields, despite being touted as a potential domestic solution to gas shortfall concerns on the east coast. Report author Tom Quinn analysed government gas basin statistics and public statements, concluding that the only way the project economics for Beetaloo work is for export market demand rather than domestic market demand. Comment was sought from Watt and Santos.
