The Northern Territory will learn more today about the Federal Government's plan to fast track development of the Beetaloo's shale gas resources.
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Prime Minister Scott Morrison is expected to make the Beetaloo the government's top priority in a $53 million plan to deliver "more affordable energy" to the east coast.
The Beetaloo is the first of five strategic basin plans followed by the North Bowen and Galilee Basins in Queensland.
Energy companies Origin Energy and Santos have been forced to delay exploration activity in the Beetaloo but remain excited about the discovery of "world class" gas resources deep down in the shale layers.
The re-elected NT Government is also pinning its hopes on the potential of the Beetaloo, bolstered by a strengthened Opposition which also believes the Beetaloo can help steer the Territory out of its economic mire.
Most expect the Federal Government will invest in plans to develop a gas pipeline to deliver the expected Beetaloo gas to market.
The NT Government is spending $327,000 to plan a route for a pipeline to bring onshore gas from the Beetaloo Basin to Darwin.
The proposed pipeline will connect with the existing Jemena pipeline at Tennant Creek and travel close to Tennant Creek, Elliott, Newcastle Waters, Daly Waters, Larrimah, Mataranka, Katherine, Pine Creek, Marakai and end at Middle Arm in Darwin.
Most believe construction of the pipeline would accelerate development of the Beetaloo.
Environment groups remain concerned about the fracking process needed to extract the shale gas and also the government's switch from coal to another fossil fuel.
The question of offsetting the substantial greenhouse gas emissions from the Beetaloo development has not been answered yet as well but would likely need Commonwealth support.
Prime Minister Morrison will today unveil a plan to negotiate a new deal with three east coast LNG exporters, deliver three domestic basin plans in the Northern Territory and Queensland, boost research and consult on a possible gas reservation scheme.
As well, a national gas infrastructure plan would identify barriers and opportunities in the market and encourage private sector investment.
If business does not step up, the government will consider - as it has for the electricity sector - action such as streamlined approval processes or underwriting.
Consumers are expected to benefit from more transparent pricing, with the gas trading hub at Wallumbilla in Queensland designated the "Australian Gas Hub".
Industry would be encouraged to come up with a code of conduct for contract negotiations with commercial and industrial users, but if such a code is not agreed by February 2021 the government would consider a mandatory code.
"To help fire our economic recovery, the next plank in our JobMaker plan is to deliver more Australian gas where it is needed at an internationally competitive price," Mr Morrison said.
"We'll work with industry to deliver a gas hub for Australia that will ensure households and businesses enjoy the benefits of our abundant local gas while we hold our position as one of the top global liquefied natural gas exporters."
Resources Minister Keith Pitt said it would drive job creation and economic growth in northern and regional Australia.
The move won't be welcomed by environmentalists who have been arguing Australia should be investing in renewable energy.
- with AAP.
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