The Northern Territory’s government has lifted its ban on hydraulic fracturing of onshore gas prospects following the report of the independent scientific inquiry released last month (OGJ Online, Mar. 28, 2018).
In announcing the end of the 2-year moratorium, the Territory’s Chief Minister Michael Gunner said his government accepted all 135 recommendations in the scientific report, which was handed down by inquiry chair Justice Rachael Pepper after 15 months of research and deliberations.
The government will release its final report by July, but Gunner has already said that the key finding has been approved—that if all recommendations are implemented, the risk from fracing can be reduced to an acceptable level.
“We have also accepted the inquiry’s advice about no-go zones and coupled with areas where there is no petroleum potential (it means) 49% of the Territory will be frac-free, including national parks, conservation areas, indigenous protected areas, towns, residential and strategic assets, and areas of high cultural, environmental, or tourism value,” he added.
Companies are expected to begin the first exploration fracing programs early in 2019 following the implementation of a regulatory regime and new laws. The government promises these will be strict. The independent EPA and the environment minister will have to approve any fracing proposals.
The lifting of the ban is a boon for companies like Santos Ltd. and Origin Energy Ltd., which both have extensive permits in the prospective Beetaloo basin where more than half the Territory’s prospective shale gas is located.
Prior to the moratorium, Origin estimated it has identified some 60 tcf of gas in its Beetaloo areas.
Nevertheless, environmental groups are still implacably opposed to fracing, arguing that it will lead to far greater greenhouse gas emissions for both the Territory and Australia as a whole.
One submission to the inquiry, from The Australia Institute of the NT, suggested shale oil and gas development could result in total emissions equivalent to 60 times the current national annual emission figure.