Northern Territory Final Fracking Report Delayed
Australia’s Northern Territory is unlikely to see significant investment in onshore gas projects next year following a decision by an independent inquiry into hydraulic fracturing to delay its final report by three months, Australian gas industry body, APPEA, said November 8.
“What was supposed to be a 12-month inquiry is now entering its second year,” APPEA NT director Matthew Doman said.
“The final report was promised by the end of this year. We now won’t see it until at least March next year. Even if the fracking moratorium is lifted after that, it is very hard to see any significant investment occurring in 2018,” he added.
The NT Government announced the moratorium on September 14 last year so that an evaluation could be done on the impact to the environment. It is to remain in place throughout the inquiry, and once the final report is in, the NT Government says it will either ban fracking or allow it in highly regulated circumstances.
The delay to the report comes as the result of “unacceptable conduct” by consultants, Cross Cultural Consultants, whilst carrying out work, the inquiry said November 7. CCC had been engaged by Coffey Services who were tasked with conducting a social impact assessment by the inquiry.
A recording of CCC released to the Australian Broadcasting Corporation last month lead to accusations that it was pushing Indigenous communities to exploit the opportunity by asking for benefits, because the industry would not go away.
“After investigation and discussions with Coffey, the Inquiry determined, and Coffey has agreed, that as a result of the issues surrounding the previous on-ground community consultation undertaken by CCC, that this portion of the social impact assessment will need to be re-done by a new and independent organisation,” the inquiry said.
An A$800mn (US$613mn) pipeline is currently being built which will connect for the first time the NT to Australia’s east coast gas market.
Work started on the pipeline on July 12 and once constructed, it has the potential to transport significant volumes of gas to the region which has faced warnings of potential gas shortages in the coming years.
First gas is scheduled to flow through the pipeline late in 2018.
Nathan Richardson