[Give Carbon, Take Hydrogen]
③ Meeting with Deputy Prime Minister Nicole Manson
Energy Transition Requires Natural Gas
Hundreds of Millions of Dollars Investment Attraction Economic Effects
"The Barossa Gas Field project is an important initiative for the Northern Territory (NT), which aims for net zero by 2050. The federal government is also supporting this project, which will create economic value for decades to come. This stance will remain unchanged."
Nicole Manison, Deputy Chief Minister of the Northern Territory, where Darwin is located, evaluated the significance of the Barossa Gas Field project involving global energy companies such as SK E&S and Santos at a press conference held at the NT Government House on the 16th. She stated, "In the intermediate process of moving from carbon-intensive industries to 100% green energy, natural gas and Carbon Capture and Storage (CCS) technology will play a very important role." She repeatedly emphasized that natural gas is essential for energy transition and that CCS is equally important.
Deputy Chief Minister Manison said, "The Barossa Gas Field project is a key part of the 'Middle Arm Sustainable Development Project' in the Darwin region, which the Northern Territory is promoting along with the Japanese Ichthys project." The Ichthys project is a liquefied natural gas (LNG) supply project by the Japanese company INPEX, accounting for 10% of Japan's total LNG imports and is known to have an economic value of $50 billion.
According to the '2023 World LNG Report' published last month by the International Gas Union (IGU), Japan was the world's largest LNG importer last year with 73.6 million tons. South Korea (47.1 million tons) ranked third after China (63.7 million tons).
On the 16th, Nicole Manison, Deputy Chief Minister of the Northern Territory of Australia, is interviewing with reporters at the Northern Territory Government Office in Australia. [Photo by SK E&S]
- What is the Northern Territory's position on the Barossa Gas Field project?
▲ It is a very important project for the Northern Territory. The National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA), Australia's offshore petroleum regulatory agency, is located in Darwin, and Santos is known to be conducting smooth consultations with Indigenous communities. The Australian federal government recently made significant changes to natural gas-related policies. Santos is preparing in accordance with these new regulations, and the Northern Territory is deeply involved. Since we are well aware that South Korea is involved in this project, the Northern Territory also considers it very important. We will continue to actively support this project.
- Some environmental groups oppose the CCS project.
▲ Protecting the environment is important. We always review these matters at every stage of project development. However, environmental groups with a strong anti-gas stance oppose any announcements related to this project. The Northern Territory believes that natural gas is essential for energy transition. Likewise, CCS is important. At least more than half of Australians recognize and support the role of natural gas in energy transition. We recognize that natural gas is a very important resource not only for Australia but also for Australia's partner countries. At the same time, the Australian government manages gas development under strict regulations and is implementing carbon reduction policies.
- What economic effects will the Middle Arm project generate?
▲ It is expected to create 20,000 jobs. Related businesses are also expected to grow significantly. Although it is difficult to mention specific figures, I believe it will have a very large impact. The Barossa Gas Field project has already created 600 jobs. Considering the population of Darwin, this is not a small number. Since the operator Santos has invested hundreds of millions of dollars in this project, economic effects are already occurring.
- What are the Northern Territory's specific plans for carbon reduction?
▲ The Northern Territory's net zero target year is 2050. CCS plays a major role in the net zero roadmap. Both the federal government and the Northern Territory recognize the importance of CCS in achieving net zero and are closely examining CCS projects.
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