The Northern Territory government says it is satisfied the recommendations of an independent inquiry into fracking have been met, clearing the way for gas production and the expansion of wells across the Beetaloo basin.
The NT chief minister, Natasha Fyles, announced Wednesday morning her government was giving a green light for gas production in the region between Katherine and Tennant Creek, a move environment organisations and scientists have warned will have an unacceptable impact on the climate.
Wednesday’s announcement means gas companies can apply for production licences and environmental impact assessments.
“Along with our world class renewable resources, our highly prospective onshore gas resources will support the energy transition to renewables not only for the Northern Territory, but for Australia and the world,” Fyles said.
The territory’s deputy chief minister, Nicole Manison, said “we want nations to be able to decarbonise the economy in a safe and sustainable way and gas will be that important fuel of transition, the onshore gas industry will also be good for the territory’s economy.”
Companies will still need to make financial decisions about whether to proceed, but if the Beetaloo did reach full production it could see thousands of wells across the landscape.
Analysis by Reputex in 2021 estimated a high production scenario in the Beetaloo could lead to an additional 1.4 billion tonnes of life cycle emissions - which includes emissions from when the gas is sold and used - over 20 years.
On Wednesday, 96 scientists published an open letter calling for the Northern Territory government to ban unconventional gas projects because of their effects on the climate.
The International Energy Agency and the Intergovernmental Panel on Climate Change have said no new coal and gas projects can proceed if the world is to limit global heating to 1.5C.
“This is a profoundly sad day for the Northern Territory. As we look down the barrel of unliveability here in the Northern Territory due to climate change, the Chief Minister has today given the green light for a carbon bomb that will hurtle us towards climate collapse,” Kirsty Howey, the executive director of the Environment Centre NT, said.
Environmental groups said that despite the government’s announcement, several of the 135 recommendations from the Pepper inquiry in 2018 had not been fulfilled, which Howey said was a broken promise to Territorians and an “unacceptable capitulation” to the gas industry.
They include an expansion of the water trigger, which the Albanese government has proposed but not yet made law, comprehensive assessment of likely cultural impacts of fracking on First Nations people and cultural rights, and provision of “reliable, accessible, trusted and accurate” to Aboriginal people about fracking.
They said recommendation 9.8 – which requires the NT and federal governments to ensure there will be no net increase in life cycle greenhouse gas emissions in Australia from gas projects in the Beetaloo – had also not been met.
Traditional owner and chair of the Nurrdalinji Aboriginal Corporation Johnny Wilson said “the government has broken its promise to us that it would implement all recommendations of the Pepper Inquiry before fracking starts”.
“Fracking companies are still not listening to the wishes of Traditional Owners who do not want thousands of flaring wells that will destroy our country,” he said.
Lock the Gate Alliance National Coordinator Carmel Flint urged the Albanese government to meet commitments on water and climate and “step in and stop the NT government jumping the gun with a dangerous rush to fracking”.
Flint said while an expansion of the water trigger to all forms of unconventional gas had been promised it was not yet law, with reforms to Australia’s environmental laws still to be drafted.
She said the issue of how to implement greenhouse gas controls in the Beetaloo had also only been referred to Energy and Climate Change Ministerial Council a month ago.
Changes to the safeguard mechanism that passed the federal parliament last month require scope 1 – direct onsite emissions – for Beetaloo projects to be net zero.
Environment groups said this did not address all of recommendation 9.8 which requires that domestic scope 2 – the energy used by gas companies - and scope 3 emissions – when the gas is sold and burnt – also be net zero.
Fyles disagreed on Wednesday that 9.8 had not been met, telling a media conference “we have absolutely met the recommendation”. She later said she acknowledged work needed to be done with the Commonwealth government on scope 2 and 3 emissions.
A spokesperson for the environment and water minister Tanya Plibersek said expanding the water trigger was part of the government’s environment reforms and draft legislation would be released for consultation later this year.
Comment has been sought from the climate change and energy minister Chris Bowen.
