NT drives Australia’s 1Q gas exploration spending

Interest in gas reserves in Australia's Northern Territory (NT) continues unabated, with the region leading the nation's exploration expenditure for a third successive quarter, oil and gas spending figures show.

Oil and gas companies spent A$151mn ($98mn) in the NT in January-March, following spending of A$196mn and A$105mn in the prior two quarters respectively, according to government agency the Australian Bureau of Statistics.

Drilling, testing and other activities continue in the onshore Beetaloo sub-basin south of NT capital city Darwin. Several firms are targeting shale gas reserves in Beetaloo, including US-Australian onshore explorer Tamboran and Australian shale gas developer Beetaloo Energy, formerly Empire Energy, which both plan to take final investment decisions on fields in Beetaloo this year.

Tamboran awarded US engineering and construction company Bechtel a pre-front end engineering contract for its proposed 6.6mn t/yr NTLNG plant last year, and this phase of the project is due to be complete by mid-2025, Tamboran said previously. The firm is also carrying out a separate study with Australian independent Santos to investigate expanding the Santos-operated 3.7mn t/yr Darwin LNG terminal.

Onshore spending continues to dominate the nation's total exploration expenditure, with offshore investment comprising 30pc of January-March spending, down from 42pc a year earlier and 39pc in October-December.

Exploration spending in Queensland decreased by 35pc on the year in the first quarter, and spending fell by 77pc in Western Australia, the country's largest gas-producing state.

First-quarter spending in Victoria totalled A$15mn, up from zero a year earlier but down from A$21mn in October-December. The state's government appears to be moving away from its former anti-gas stance, having recently approved an environmental plan for a proposed new LNG import terminal. New gas developments are needed in Victoria, as it faces a major shortfall of supply owing to declining output at the ExxonMobil-operated Gippsland basin joint venture, the state government said.

By Tom Major