Addressing the South-East Asia Australia Offshore Conference (SEAAOC), Martin said the Territory Government had begun collaborating with industry to establish a gas-driven industry base.
“We are working with industry to develop business cases,” she said.
“We have been in discussions with Dow Chemicals and are heartened by the progress of negotiations and are optimistic about Dow’s future in the Northern Territory.”
The NT Government has identified land close to the city on the Middle Arm Peninsula that is to host a gas-based industrial hub.
Martin has long said Australia must treat emerging opportunities for downstream gas-based manufacturing as a national priority, and has suggested using deferred taxation to boost investment in downstream gas-reliant industries.
But unlike Western Australian Premier Alan Carpenter, she has explicitly ruled out imposing a domestic gas reservations policy on LNG export projects.
Martin said LNG was very likely to become increasingly important to the NT as a ConocoPhillips/Santos exploration program proved up more supplies of gas to underpin a Darwin LNG expansion.
“There is considerable potential for further major gas discoveries in the Timor Sea,” she told SEAAOC delegates.
“On a recent Northern Territory trade delegation to Japan, I found the Japanese Government and major energy customers were very positive about the potential of Timor Sea LNG.”
Martin said Australian LNG had a good reputation in Japan, and Darwin LNG was recognised as a successful project and a reliable supplier.
Darwin LNG is currently loading its 61st cargo and SEAAOC delegates attending last night’s welcome reception saw the tanker leaving the LNG plant.
This cargo is an above-contract shipment.
Darwin LNG is contracted to produce 3.3 million tonnes of LNG a year for Tokyo Gas and Tokyo Electric, but is now estimated to be producing at an annual rate of about 3.4 million tonnes. Additional output will be shared by the two Japanese buyers.
In addition to Darwin LNG, other major LNG projects being planned for the Timor Sea include the Woodside-operated Greater Sunrise, MEO Australia’s Tassie shoal development, and the Inpex-operated Abadi scheme, which is in Indonesian waters but seems likely to be processed in Darwin.
