APPEA Urges Australia's NT to Invest in Onshore Gas Projects, Create Jobs

The Australian Petroleum Production and Exploration Association (APPEA) urged the state government of Australia's Northern Territory to invest in onshore gas projects to create new jobs for the economy, the industry body's South Australia/Northern Territory Director Matthew Doman said Wednesday.

APPEA noted that the Northern Territory (NT) budget handed down Tuesday highlighted the need for new investment in onshore gas projects to arrest a projected decline in taxation and royalty revenues in the state.

The Northern Territory has benefited from the economic boom in recent years, which arose largely from construction activity linked to Japan's Inpex Corp.-operated $34 billion Ichthys liquefied natural gas (LNG) project in Darwin, but Doman pointed out that new oil and gas projects were needed as the LNG development transitioned from construction to production phase, now scheduled for end September 2017.

“While Ichthys will deliver ongoing benefits to the Territory for decades to come, it’s clear that the NT economy needs the new jobs and investment that onshore gas can deliver,” Doman said in the press release.

“The Budget papers show that without new investment, taxation and royalty revenue to the NT Government will stagnate.”

The APPEA executive referred to an independent research undertaken by Deloitte Access Economics last year which concluded that developing the Northern Territory’s substantial shale gas resource had the potential to create up to 6,300 new long-term jobs and generate up to $331 million (AUD 460 million) a year in additional revenue for the NT Government.

Doman commented that “the solution is simple ... the Territory has abundant onshore natural gas that can be safely and sustainably developed.”

“Not only will shale gas provide a valuable new source of revenue for government, it will create new jobs, investment and opportunities in regional centres and remote Aboriginal communities.”

Doman said the commitment of $360,000 (AUD 500,000) to examine the feasibility of converting gas into synthetic diesel was another example of the Northern Territory seeking to benefit from its onshore gas resource.

Chee Yew has covered the upstream and downstream sectors of the oil and gas industry in Asia for more than 15 years. Email Chee Yew at cheeyew.cheang@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Chee Yew Cheang
APAC Editor | Rigzone
 -  Malaysia's SapuraKencana Posts 7.1% Ga... (Sep 29)
 -  TH Heavy Engineering, McDermott End Pa... (Sep 26)
 -  Singapore's NUS Slowly Builds its Petr... (Sep 26)
 -  BLOG: Keeping Experienced Staff in Dow... (Sep 26)
 -  Farstad Consolidates Australian Ops in... (Sep 21)


Most Popular Articles

From the Career Center
Jobs that may interest you
Administrative Assistant II
Expertise: Secretarial or Administrative
Location: Houston, TX
 
US Williston, ND: Entry Level Administrative Associate - Administrative Spe
Expertise: Secretarial or Administrative
Location: Williston, ND
 
Administrative Assistant III - Amarillo, TX Job
Expertise: Secretarial or Administrative
Location: Amarillo, TX
 
search for more jobs

Brent Crude Oil : $48.69/BBL 5.91%
Light Crude Oil : $47.05/BBL 5.32%
Natural Gas : $2.952/MMBtu 1.60%
Updated in last 24 hours