Australia's Northern Territory has confirmed it will allow the development of a vast sub-basin for shale gas production, despite concerns about its potential impact on climate change. The region, which had previously banned fracking, aims to exploit a sub-basin that is estimated to hold about 100 times Australia's existing natural gas production. The area, twice the size of Texas and with a population of less than 250,000, has been a contentious issue in Australia for years, with climate campaigners opposing gas production and resources companies arguing that it is necessary for domestic energy demand.
The flagship Beetaloo Sub-basin alone is estimated to hold about 500 trillion cubic feet of gas, according to the Northern Territory government. This is more than three times annual global consumption and a quarter more than all proved US shale gas reserves. However, opponents argue that the development of the Beetaloo sub-basin would generate as much as an additional 89 million tons of greenhouse gas emissions annually, which is at odds with the Australian government's pledge to achieve net zero emissions by 2050.
A group of almost 100 opponents wrote a letter to the region's government, published in local newspapers, warning about the potential climate impact of shale gas production. The letter was signed by Matthew England, a professor at the University of New South Wales Climate Change Research Centre. The Northern Territory's plan includes a commitment to aim to ensure that Australia's emissions do not increase as a result of new onshore gas production, according to the region's government.
Gas producer Santos Ltd. is continuing to progress potential developments in the McArthur Basin, of which the Beetaloo Sub-basin is a part. Origin Energy Ltd. sold its interest in a Beetaloo venture last year as part of its plan to prioritize clean energy. Prime Minister Anthony Albanese’s national government, which took office last year, has legislated more stringent emissions reduction targets, but also backs the role of gas in the nation’s energy mix, vowing to protect consumers from supply shortfalls.