Northern Territory Chief Minister Paul Henderson has said that the Ichthys LNG project, together with the existing Darwin LNG project, will underpin the Territory’s economy for decades to come.

But these two projects only represent the start of an LNG industry in the Territory. Along with proposed projects like the Tassie Shoal Methanol Plant and LNG Project, floating LNG (FLNG) technology presents a significant opportunity.

Northern Territory Minister for Primary Industry, Fisheries and Resources Konstantine Vatskalis has even said that the Northern Territory could become “the floating LNG capital of the world”.

“Within ten years...[the Northern Territory] could have five to seven FLNG projects under development or in production,” says Mr Vatskalis.

In order to further LNG investment, the Territory Government is working to support the industry on several fronts.

Working with businesses

The Territory operates a whole-of-government taskforce for LNG developments.

This taskforce approach aims to identify and resolve issues early, and to help proponents understand local requirements and expectations. It also provides a strong mechanism for information sharing and accountability.

The Department of the Chief Minister leads co-ordination of engagement between proponents and relevant government agencies.

As an example of this business engagement, the Department of Business and Employment and the Department of Education and Training are working with INPEX to prepare for the training needs for its Ichthys LNG construction workforce. This will be followed up on completion of the development with engagement in relation to the operations workforce skills needs.

The Northern Territory Government also says that it provides a greater level of regulatory certainty for proponents than other Australian jurisdictions. Notably, there is no third-party appeal embedded in the Territory’s environmental assessment process.

Onshore infrastructure

The Middle Arm Peninsula of Darwin Harbour, which hosts the Darwin LNG Plant, has been reserved for industrial development. Aside from its proximity to a deep water harbour, making it well-suited to accommodate LNG tankers, the site includes nearby gas pipeline infrastructure, port infrastructure for project cargoes, and good road and rail connectivity. These factors make it a particularly attractive greenfield development site, says the Territory Government.

The first stage of a Common User Facility has also been established in the Darwin Business Park, adjacent to the East Arm Wharf. The facility now enables local industry to participate in larger fabrication projects by amalgamating smaller fabrication modules for load out over the East Arm Wharf. The Common User Facility will also cater for a range of demands, including short-term lay down for resource projects.

Looking for more offshore

The Northern Territory Government sees the potential rise of FLNG projects in the region as an opportunity rather than a challenge.

There will be a synergy with existing businesses supporting and servicing both offshore oil and gas production and onshore LNG production, the Government says.

It plans to align existing initiatives to grow the supply and service industry with the FLNG industry as it establishes and expands. It foresees that an increasing number of FLNG projects and their co-operation with onshore LNG projects will build a critical mass for an ever-increasing number of specialised support industries.

Meet the market

The Chief Minister, along with other cabinet members, has made numerous visits to Japan and China to promote investment and exploration opportunities in the Territory’s energy and minerals sector.

The Territory Government believes that to attract investment from these markets, government support is an essential element for success.

In order to promote the local resources sector supply and service industries, the Government has also organised and lead delegations to overseas markets and trade expos.

On a recent roadshow promoting business and investment, Chief Minister Paul Henderson highlighted the Territory’s advantages for potential LNG production and export projects, noting that “our proximity to Asia is a key and critical difference to the rest of the country, as is our size – we are small enough to make it easy to make things happen.”