Terry’s Alliance backing fracking
TERRITORY Alliance leader Terry Mills said his party would back fracking in the NT for the foreseeable future, but it is not the solution to saving the NT’s economy.
In a column written for the Sunday Territorian, Mr Mills said although more environmentally friendly energy sources like solar and hydrogen will become economically viable in the future, he supports fracking for the “medium term”.
“The economic and environmental benefits of gas are why a Territory Alliance government will permit the onshore gas industry (‘fracking’) to continue for now, but only under the strictest environmental standards and only with the gas industry paying for all compliance,” he said.
Mr Mills said moving away from onshore gas now would destabilise the industry, noting that former Labor chief minister Paul Henderson in 2009 signed a deal to supply the NT with gas until 2034. “Few know that the NT government has signed up to pay for a continued gas supply from current ENI production near Wadeye (Port Keats) until 2034. That means the NTG must pay for the gas for the next 14 years even if we don’t use it,” he said.
“If onshore gas is a viable industry in every way, then we should welcome it as a part of our economy.
“To do otherwise would send a message of uncertainty and governmental incompetence to all businesses right at the time when the NT is most in need of additional business investment.”
However, with fracking likely to contribute to only 1 per cent of NT Government revenue, Mr Mills said it is not “the ‘silver bullet’ to save the NT economy”.
Instead, he proposed a gradual shift to renewables, as well as a Sovereign Wealth Fund from gas royalties.
“Territory Alliance has set a sensible target of at least 30 per cent of the Territory’s electricity to come from renewable energy sources by 2030 and up to 90 per cent by 2050,” he said. “Territory Alliance will also establish a Sovereign Wealth Fund from gas royalties to be managed by an independent board to invest in businesses to further grow the NT economy.”
THE Northern Territory’s economic future is inextricably linked to energy.
We have relied on fossil fuels in the past but that won’t be the case in the future. Most recognise the environmental benefits of solar-generated electricity today and in a few years the economic benefits of solar will become obvious to all. Hydrogen could be just around the corner.
The Territory is resource rich and therefore has a range of options even as energy markets change from carbon to renewables. One option we do not have is to ignore the change or spend our energy on endless ideological arguments because the fact is both energy and investment markets are changing. The role of government is to provide pragmatic, visionary leadership and navigate well in times of change.
New regulatory models, policy and planning will be required to maximise benefit for the Territorians in the short and long term.
Right now, and for the medium term gas is still economically viable. Gas, of course, is a much cleaner energy source than coal or petroleum. The economic and environmental benefits of gas are why a Territory Alliance government will permit the onshore gas industry (‘fracking’) to continue for now, but only under the strictest environmental standards and only with the gas industry paying for all compliance.
If onshore gas is a viable industry in every way, then we should welcome it as a part of our economy. To do otherwise would send a message of uncertainty and governmental incompetence to all businesses right at the time when the NT is most in need of additional business investment.
According to the Pepper Report (the Scientific Inquiry into Hydraulic Fracturing) the NT onshore gas industry is likely to contribute about 1 per cent of NTG revenue and 250 jobs. Even if it is a bit more it is obvious that onshore gas is not the ‘silver bullet’ to save the NT economy. Keeping in mind that gas is not renewable – you can only sell it once – we should not be in a mad rush to sell our gas at any cost. If noone in the gas industry wants to do it properly then let the gas stay in the ground for a future generation. To ensure the onshore gas industry has a multiplying effect on jobs and the economy, Territory Alliance will ensure enough gas is available at the right price and under the right conditions to supply a downstream gasbased manufacturing sector.
The potential exists to create a significant number of local jobs in diverse industries such as fertilisers, plastics and hydrogen. The potential for increasing horticultural productivity to supply southern and northern markets by linking water, fertiliser and energy is one obvious opportunity.
Territory Alliance has set a sensible target of at least 30 per cent of the Territory’s electricity to come from renewable energy sources by 2030 and up to 90 per cent by 2050. It simply isn’t possible or sensible to switch to 100 per cent renewables overnight. But if we plan now for the future, we can achieve it. Few know that the NT government has signed up to pay for a continued gas supply from current ENI production near Wadeye (Port Keats) until 2034. That means the NTG must pay for the gas for the next 14 years even if we don’t use it. A Territory Alliance government will be sensible and make use of that gas first, then rely more heavily on renewables.
Territory Alliance will take a pragmatic approach to government whilst maintaining a long-term vision in favour of renewables.
Territory Alliance will also establish a Sovereign Wealth Fund from gas royalties to be managed by an independent board to invest in businesses to further grow the NT economy. The Sovereign Wealth Fund could be a game changer for the NT’s future prosperity.
We need to understand the global context of the energy industry. It is an industry in transition. We will continue to use fossil fuels in the short term but with our goal clearly focused on increasingly more renewable energy sources.
This is the commonsense approach to the economy and energy that a Territory Alliance government will take.