Tamboran Resources, Fortescue Future Industries among companies assigned land at Middle Arm precinct

Dec 03, 2023

Gas company Tamboran Resources has announced plans to build a liquefied natural gas (LNG) plant almost as big as Inpex's Ichthys facility at Middle Arm in Darwin to export fracked gas from the Beetaloo Basin.

Tamboran is one of five companies the Northern Territory government has provided commitments to for land at its Middle Arm development.

The NT government has long labelled the precinct — which has received $1.5 billion in federal funding — a "sustainable development" focusing on renewable energy and manufacturing.

On Friday, Tamboran announced a proposal to build an export facility at the site, with an initial capacity of 6.6 million tonnes of LNG per year, and with the potential for expansion.

Inpex's Ichthys plant, also at Middle Arm, has an annual LNG production capacity of up to 8.9 million tonnes.

Tamboran is working to develop a shale gas project in the Beetaloo Basin, 600 kilometres south-east of Darwin, but is yet to obtain production approvals.

NT government documents show so-called blue hydrogen requiring natural gas will play a significant role at the Middle Arm Sustainable Development Precinct on Darwin Harbour.

"If deemed commercial, Tamboran aims to sanction the proposed LNG development by 2026, with first volumes anticipated to commence by 2030," Tamboran chief executive Joel Riddle said.

"The enormous scale of the basin means that the low reservoir CO2 gas has potential to deliver large and scalable volumes over the long term not only for Australia's east-coast gas market, but also to international markets."

Tamboran said its development had the potential to deliver "hundreds of millions of dollars in royalties to the NT government and native title holders".

Chief Minister Natasha Fyles said Middle Arm could create up to 20,000 indirect jobs if it reached full-scale development.

"A lot of nonsense gets spouted about Middle Arm, but today's announcement shows the Territory, investors and the rest of the country just how committed my government is to making this a reality," Ms Fyles said.

Anti-fracking group Frack Free NT spokesperson Phil Scott said taxpayer money should not be used to assist gas developments at Middle Arm.

"This announcement confirms what groups like ours have been saying since day one — that the government-provided $1.5 billion for the Middle Arm Precinct will be a taxpayer-funded subsidy for fracking companies like Tamboran," Mr Scott said.

"Tamboran is a multinational company, with a billionaire backer — there's no way Australian taxpayer dollars should be used to support its polluting fracking plans."

Environment Centre NT's Naish Gawen said the Middle Arm development could not be considered "sustainable".

"This is about drastically expanding fossil fuel production in the NT and estimates show the [Middle Arm] facility could increase the NT's emissions by 75 per cent," he said.

"If this is 'sustainable' then that word no longer means anything."

Treasurer Eva Lawler defended the Middle Arm development and an onshore gas industry in the Beetaloo, citing the need to bolster the NT's flagging economy.

"Territorians want to see bituminised roads, they want to see more schools, more hospitals," Ms Lawler said.

"We have to diversify our economy, we have to increase our on-source revenue, otherwise we will have to rely on someone on the east coast spending money so we can get our GST up."

Other companies which have secured land at Middle Arm have outlined plans to build green hydrogen facilities, critical minerals processing and battery production.

Mining magnate Andrew Forrest's Fortescue Future Industries (FFI) has proposed to develop a green hydrogen and green ammonia production plant, as well as export facilities.

Ms Fyles said any conflicts of interest with her predecessor, Michael Gunner — who now works for FFI — had been managed.

"We work very hard to manage conflict of interests; it's a small community, everyone deserves a career post-politics," she said.

"I'm confident they have been declared and managed."

Tivan Limited has secured land to develop its previously announced critical minerals facility, which will process material from its proposed mine in Central Australia.

French company Total Eren's subsidiary, TEH2, wants to build a facility capable of producing more than 80,000 tonnes of "renewables-based hydrogen per annum for domestic and export potential".

Minerals company Avenira proposed building a lithium-ferro-phosphate cathode facility, which will manufacture precursor battery cathode materials from critical minerals.

The NT government said another 20 companies had expressed interest in building at Middle Arm.