AI will require over 17 bfc/d of natural gas-fired power globally, page-19

Beetaloo or Bust, Wood Mac, May 2024

From a commercial perspective, the local Northern Territory market does not require the large volumes of gas that would need to be produced to sustain an unconventional play the size of the Beetaloo. But it is gas-short and needs smaller volumes as soon as possible (Fitzgerald 2023).

The East Coast of Australia is an attractive market, with high gas prices and a looming gas shortage (AEMO 2023). However, additional infrastructure would be required to deliver more than approximately 100 mmcfd of gas to the East Coast market. The Northern Gas Pipeline is the limiting factor here.

Liquefied natural gas (LNG) export from Darwin, where there are currently two LNG facilities, may be an attractive option. This is an option operators have explored, with memorandum of understanding (MOUs) signed with global LNG players Shell and bp (Fowler 2023). Again, more infrastructure and a greenfield or brownfield LNG plant development would be required.

The requirement for additional infrastructure and the isolated nature of the play means that success in the Beetaloo isn’t a foregone conclusion. Costs, subsurface potential and markets all play a make-or-break roll in the success of the Beetaloo as a shale play. This work examines a range of factors that contribute to the success, or lack thereof, of this nascent shale play in the heart of northern Australia