Natural gas that is usually flared into the air will instead be used to keep the lights on in a territory facing an energy shortage.
The Northern Territory government on Tuesday signed an agreement with Beetaloo Energy Australia for the sale of appraisal gas, an early step in developing the Beetaloo sub-basin for gas production.
The deal would "save the Northern Territory", NT Energy Minister Gerard Maley said, noting it faced possible power outages due to cyclone damage to an offshore gas platform in November.
Beetaloo Energy managing director Alex Underwood said it was hoped to have gas flowing as a first priority to the NT by the second half of 2026.
The sub-basin, about 500km southeast of Darwin, has enough gas to supply all of Australia, with Beetaloo Energy also looking to supply the east coast and to export gas in the future.
Mr Underwood said the agreement would unlock the financing Beetaloo Energy required to move into pilot production and have gas usually flared off in the appraisal phase used to supply the NT's energy needs.
"We believe that it is critical for our energy security, both here in the Northern Territory and for Australia, that we develop the Beetaloo basin's natural gas resources."
The proposed development is opposed by environmental groups that want a shift away from reliance on gas to the use of renewable energy.
The NT's Country Liberal Party government has previously signed binding gas sales agreements with Tamboran for the first supplies from the Beetaloo.
Both agreements should provide enough gas to power essential services across the territory and deliver gas royalties to the government, Mr Maley said.
Mr Underwood said his company was grateful to Traditional Owners and the NT government for enabling it to provide the gas and royalties to benefit all Territorians.
