Lifting fracking ban will help NT economy, says Appea as Budget deficit triples

PERTH (miningweekly.com) – The Australian Petroleum Production & Exploration Association (Appea) has urged the Northern Territory government to reconsider its moratorium on hydraulic fracturing (fracking), saying the latest territory Budget confirms the need for new private sector investment.

Appea Northern Territory director Matthew Doman said that lifting of the current moratorium would generate a new source of income for the Northern Territory government, which this week unveiled a tripling of its Budget deficit, to A$1.3-billion.

“The Northern Territory Budget confirms the need for new revenue sources to fund vital public services, as well as new investment to grow the economy. Natural gas can deliver both,” Doman said.

He pointed to a study by Deloitte Access Economics that found developing onshore gas could increase Northern Territory government revenues by almost A$1-billion by 2040 and create up to 6 300 new jobs.

“The benefits of natural gas investment will build slowly but they will be long term. That’s why it is critical the delivery of those benefits is not delayed,” Doman said.

“Australia is desperate for new sources of natural gas. The Territory has abundant onshore gas that can be safely and sustainably developed. This is a win-win for the Northern Territory and the rest of the country.”

Doman said the gas industry hoped the current inquiry into fracking in the Northern Territory would show the industry could be developed safely.

“Every other inquiry into fracking has shown the process is safe when properly regulated. There’s no reason the Northern Territory inquiry should reach any other conclusion,” he said.

The Association of Mining and Exploration Companies (Amec) said the latest Budget confirmed the importance of mining in the Northern Territory’s future.

Amec CEO Simon Bennison pointed out that royalties from mining were expected to increase by A$55-million over the coming year, which was good news for the community.

“In her speech, the Treasurer said A$1.6-billion worth of resource projects are being developed in the Northern Territory. Each new mine brings jobs, revenue and royalties to the Northern Territory.

“The government must do all that it can to encourage mining and mineral exploration to discover the mines of tomorrow,” Bennison said.