BEETALOO BASIN — Santos could begin drilling up to 12 new gas wells in the Northern Territory’s Beetaloo basin within weeks after the Finocchiaro government granted approval for the project. The Northern Territory government, led by Chief Minister Lia Finocchiaro, authorized the drilling at Tanumbirini Station to assess the quality and commercial potential of the gas resource.
A Santos spokesperson confirmed the company planned to begin drilling in the second half of the year, with the specific month still to be determined. Santos chief executive Kevin Gallagher told investors that the company was prioritising its Beetaloo operations ahead of some other domestic projects and described its acreage in the region as a “phenomenal resource” that “could supply the east coast market for more than 50 years.”
Critics have urged federal environment minister Murray Watt to intervene. Kirsty Howey, executive director of the Environment Centre of the Northern Territory, said she was concerned “the project is a gateway to full-scale fracking in the territory” and would add to the climate crisis. She added, “Minister Watt needs to do his job and ensure that Santos’ largest ever fracking plan is assessed under our federal environment laws. The assessment should consider the impacts of toxic fracking chemicals on waterways like the extraordinary Hot Springs Valley, and on iconic species like the critically endangered northern blue-tongue skink and the endangered Gouldian finch.” The Environment Centre of the Northern Territory and the Australian Conservation Foundation jointly called for the project to be “called in” for federal environmental review.
Tom Quinn, author of a report by energy consultancy Springmount Advisory commissioned by the two environmental groups, said, “The only way the project economics for Beetaloo work is for export market demand rather than domestic market demand.” His analysis found that gas from the Beetaloo basin could be up to two-and-a-half times more expensive than gas from existing Queensland fields. A 2023 analysis by Climate Analytics estimated that fracking across the Beetaloo could lead to 1.2 billion tonnes of greenhouse gas emissions over 25 years.