The Northern Territory government has defended its handling of a deal to buy gas from the Beetaloo Basin, amid criticism around its secrecy. Among those questioning the deal with Tamboran Resources is another gas company, which says it would have liked to have seen the tender opened to competition from multiple companies.
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00:00It was all smiles for the cameras on Tuesday, as the Chief Minister and Tamborin Chief Executive
00:08announced the inking of a major deal, but as the agreement went public, others weren't
00:14so happy.
00:15We were a bit curious as to why a more competitive or transparent process wasn't undertaken.
00:23Central Petroleum runs a gas field in central Australia.
00:26Boss says his company could have supplied gas to NT power plants sooner than the Biddleoo.
00:31We'd been trying to engage with the NT government on a long-term gas supply, which would ensure
00:41that our gas in the NT would stay in the NT.
00:45We were a bit surprised at the size and the binding nature of the agreement.
00:53This is the way that negotiations happen around the supply of gas.
00:57What we also get with Tamborin is we get a whole new industry, a whole new player into
01:03that area of gas and producing gas in the Northern Territory.
01:06The secrecy around the Tamborin announcement also prompting criticism from legal and energy
01:11experts.
01:12It's gobsmacking, I've got to be honest.
01:14It raises real questions too about value for money.
01:18Every other state and territory, when they want new energy, they have open tenders so
01:23that the best value energy can come into the system.
01:25It gives the impression that they're paying too much and not interested in competition,
01:29that it's jobs for the boys, rather than transparent, open government where the best price and the
01:34best services is the one being selected.
01:36The government is defending its processes, saying there'll be other contracts that companies
01:41like Central Petroleum will have the opportunity to bid for.
01:45But the government is also wearing some risk, that Central Petroleum could opt to sell its
01:49gas to the lucrative East Coast market in the meantime.
01:53If the Betaloo doesn't clear several looming financial and environmental hurdles, that
01:58could leave the NT's power grid reliant on importing gas.