Revoking the moratorium on onshore unconventional shale gas industry in the Northern Territory (NT) could lead to income generation of between $937m and $5.8bn over 25 years, according to an independent report.
Hydraulic Fracturing in the NT remains banned until the findings of an independent scientific inquiry, which was commissioned last year, are submitted.
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The enquiry has released an independent economic impact assessment of a potential onshore unconventional shale gas industry in the NT, conducted by ACIL Allen Consulting.
The scope of the report was to assess the potential direct and indirect economic benefits, impacts and risks of hydraulic fracturing in the region.
Five scenarios over a 25-year timeframe were included in the report, depending on whether small-scale, moderate or large-scale development is taken up or the status quo is maintained.
Enquiry chair Justice Rachel Pepper said: “The assessment indicates the most visible economic impact from the three development models would be an increase to NT Government revenue.”
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By GlobalDataThe revenue accrued to the government could be between $29.1m, $80.6m, or $143m per annum, in the event that the ban is lifted.
Up to 524 full-time jobs per year, including indirect employment, are estimated to be created if the development of onshore unconventional shale gas is considered.
Justice Pepper further added: “The original scope of works included just three scenarios. One was a baseline model, where the moratorium remained in place, the second involved hydraulic fracturing in the Beetaloo Sub-basin only, and the third was hydraulic fracturing throughout the Northern Territory.
“It was not possible to conduct modelling on a Beetaloo Sub-basin-only development scenario given the lack of available petroleum resource information, because there has only been one fracture-stimulated horizontal well tested in the NT, namely, Origin Energy’s Amungee NW-1H well in the Beetaloo Sub-basin of the McArthur Basin.”
In 2015, a study conducted by Deloitte Access Economics and commissioned by the Australian Petroleum Production and Exploration Association (APPEA), indicated that developing a shale gas industry in the NT could lead to nearly $1bn of government revenue.
