Drilling for appraisal shale gas in the Beetaloo sub-basin in Australia's Northern Territory (NT) can continue after Australia's Federal Court rejected an attempt by environmental campaigners to pause development.
The court on 26 June dismissed a case brought by Lock the Gate Alliance, a coalition of anti-fossil fuel activists. Lawyers for the applicant had argued federal government approval was needed for US-listed shale gas developer Tamboran Resources to use hydraulic fracturing or 'fracking', to drill its 40 TJ/d Shenandoah South pilot project in the region.
But the applicant failed to establish that Canberra should review the project under the Environment Protection and Biodiversity Conservation Act, Justice Nicholas Owens found. The court was not satisfied the development would have a significant impact on a water resource, the hurdle required for it to be federally-assessed.
The project has been approved by the NT government which is also effectively underwriting its development with a take-or-pay gas sales agreement inked in 2024. First gas is planned for July-September.
The Beetaloo sub-basin is a remote shale gas region about 500km south-east of NT capital Darwin — home to the 9.3mn t/yr Ichthys and 3.7mn t/yr Darwin LNG (DLNG) terminals.
DLNG holds permits for up to 10mn t/yr of exports, with operator domestic independent Santos eyeing Beetaloo flows for a potential expansion of the facility.
Santos will drill three Beetaloo appraisal wells from July, which it said would be tested for 9-12 months to determine further development actions.

