The Morrison government is forging ahead with its "gas-led" recovery, with $50 million on offer for companies who want to drill into the Northern Territory's Beetaloo Basin.
The government says the grants will lead to another 10 exploration wells in the basin by next year.
Resources Minister Keith Pitt hopes it will also result in another $150 million of private investment.
"This commonwealth grants program will support gas operators to speed up exploration and development of the Beetaloo Basin," he said.
"These grants are a key component of our government's agenda to bring gas from this world class resource into the market by at least 2025."
The program will provide grants of between $750,000 to $7.5 million to help gas companies for drilling that happens before December 30 next year.
The Beetaloo Basin is one of five gas fields the Commonwealth plans to open up to support exports and manufacturing.
It sits over the Cambrian Limestone Aquifer which has some of the best fresh water in a region that is dependent on groundwater, like much of the NT.
A recent CSIRO and Charles Darwin University study found more research is needed to ensure the proposed gas fracking doesn't endanger tiny subterranean shrimp critical to groundwater health.
