Gas inquiry consultant to value the potential of fracking

The consultants will examine what economic impact any approval for the drilling in the deep shale rock for natural gas south of Katherine would have.

Miners have claimed by the NT Government overturning its moratorium on the development of unconventional gas would lead to thousands of jobs.

Some supporters believe the oil and gas rich rocks three to four kilometres deep have the ability to rescue the NT from its economic malaise.

The scientific inquiry, chaired by Justice Rachel Pepper, has awarded ACIL Allen Consulting Pty Ltd (ACIL Allen) the tender to undertake an economic impact assessment of the potential gas industry.

Justice Pepper said ACIL Allen demonstrated significant relevant experience and expertise. 

“ACIL Allen have demonstrated use of leading practice methodology on complex economic modelling projects that relate to the development of onshore petroleum resources,” Justice Pepper said. 

“There were six tenders submitted,” she said.

The cost of the ACIL Allen tender is $287,719.88.  

“ACIL Allen will be required to provide a final report to the inquiry by September 1. 

The inquiry is expected to hand down its final report in December.

“This timeline ensures that the Inquiry’s Final Report to the Northern Territory Government will be handed down by the end of the year, as previously stated,” Justice Pepper said. 

The economic assessment to be undertaken by ACIL Allen is a wide ranging study focussing on the actual and potential direct and indirect economic benefits, impacts and risks of hydraulic fracturing for onshore shale gas development in the Northern Territory under the current regulatory regime. 

ACIL Allen must consider the following scenarios in making the assessment: 

a) Scenario 1, or the baseline scenario, where the moratorium on hydraulic fracturing of unconventional shale gas reservoirs remains in place;

b) Scenario 2, which involves the development of the onshore unconventional shale gas industry in the Northern Territory; and

c) Scenario 3, which involves the development of unconventional shale gas reservoirs in the Beetaloo sub-basin only.

ACIL Allen will also be required to liaise with a wide range of stakeholders in the Northern Territory to consider the impacts of onshore unconventional shale gas development on other industries, such as, tourism, agriculture, horticulture and pastoral. 

The cost of the ACIL Allen tender is $287,719.88.  

The Inquiry’s second tender, for a social impact assessment of any potential onshore unconventional shale gas development in the Northern Territory, closed this month. 

Justice Pepper said the Inquiry is re-scheduling community meetings in Yuendumu and Maningrida, which were postponed in March 2017.

A second round of public hearings and further community engagement will take place after the Inquiry releases its interim report in the next few months.