Northern Territory Govt To Fund Feasibility Study Into Potential Expansion Of LNG

Northern Territory Govt To Fund Feasibility Study Into Potential Expansion Of LNG

Northern Territory Chief Minister Michael Gunner

Feasibility Study Into Second Darwin LNG Train

Victor P Taffa

Northern Territory Government will contribute $250,000 towards a feasibility study into the potential expansion of ConocoPhillips’ Darwin Liquified Natural Gas (DLNG), which could create thousands of jobs in the Northern Territory.

Feasibility study will examine the viability of developing a second LNG train at the Darwin LNG plant at Wickham Point.

Chief Minister Michael Gunner said a second train for the Darwin LNG facility would involve a multi-billion dollar investment and represent a new development in Australia’s off-shore gas industry.

“Northern Territory Government is focused on restoring trust by creating jobs especially in the private sector and we believe funding this feasibility study is a good investment.” Chief Minister Gunner said.

“First train at Darwin LNG created around 2,500 jobs during construction and over 8,500 sub-contracts and purchase orders.”

“In operation it directly supports over 250 local jobs and on average around $100 Million per year in supply and service opportunities.” Chief Minister Gunner said.

“Northern Territory Government is supporting the feasibility study because this is a significant investment towards the business case for potential expansion at Darwin LNG, potentially creating thousands of jobs during construction and operation.”

Chief Minister Gunner said the study will explore different LNG process technologies and production rates to support a low cost development for a second LNG train.

“Northern Territory has an abundance of natural resources, a large mining and energy industry and major construction and infrastructure projects.” Chief Minister Gunner said.

“Oil and gas service industry has grown significantly since the commissioning of the Darwin LNG in 2006 and has continued to develop strongly throughout the construction of the Ichthys LNG facility.”

ConocoPhillips Australia West Vice President External Affairs, Kayleen Ewin, said the feasibility study is the first step in finding new ways to commercialise the substantial offshore resources in Northern Australia.

“With Darwin LNG, 5 upstream joint ventures and the Northern Territory Government involved, it is a pioneering example of all of industry and government collaborating on solutions to unlock major investments.” Ms. Ewin said.

Northern Territory Government is contributing around 40% of the feasibility study costs, with the remainder funded by ConocoPhillips and upstream resource owners in Evans Shoal, Caldita-Barossa, Poseidon, Cash Maple and Bonaparte LNG (Petrel Tern)

Feasibility study is scheduled to be complete by the end of this year.