Findings of a recent Deloitte report entitled, “Economic impact of shale and tight gas development in the NT” have suggested that onshore shale and tight gas production has the potential to drive significant economic growth and provide substantial benefits to the Northern Territory (NT) economy.
APPEA engaged Deloitte Access Economics to undertake an economic impact assessment of the potential benefits for the NT in developing its shale and tight gas resources.
The report suggests that this economic growth could provide the following:
- A cumulative $22.4b increase in Gross State Product (GSP) between 2020 and 2040 in net present value (NPV) terms.
- A long term employment boost of 6,300 full time positions in the NT.
- A cumulative $961m increase in NT Government revenues between 2020 and 2040 in NPV terms.
According to the NT Geological Survey, the ‘best estimate’ of NT shale gas resources is approximately 234 Tcf (of this estimate, 119 Tcf relates to basins lying solely within NT boundaries, with the remainder consisting of shared resources with other States). This makes the NT a potentially important player in Australia’s shale and tight gas sector.
The industry in the NT is at a developmental stage, but significant opportunities are offered by continued growth in global demand for LNG and the proposed development of a pipeline to connect the East Coast and NT gas markets.
The report has been published on the APPEA website.