CANBERRA, Sept. 1 (Xinhua) -- Gas from a major fracking project in Australia's Northern Territory (NT) on Tuesday began flowing into the electricity grid eight years after a local ban on fracking was lifted.
NT Chief Minister Lia Finocchiaro on Tuesday cut the ribbon to mark the first flow of gas from the Beetaloo sub-basin, declaring that the project will deliver long-term economic benefits.
"This project means Territory gas powering Territory homes, businesses and industry," she said in a statement.
According to the NT government, the sub-basin located about 500 km southeast of Darwin is a world-class shale gas resource, with an estimated 430 trillion cubic feet of gas in place.
The beginning of production on Tuesday by the Sydney-based Tamboran Resources, the largest acreage holder in the basin, comes eight years after the NT government lifted a moratorium on fracking that was imposed in 2016.
Finocchiaro said on Tuesday that the NT government has signed long-term fixed-rate contracts for gas from the basin that will replace costly emergency gas arrangements.
"We have secured Beetaloo gas at a fixed price the government is extremely satisfied with, locked in for the next decade," she said.
"Putting downward pressure on energy prices over time, helping to curb price increases, while also reinforcing reliability is a major step forward for the Territory."
Australian Conservation Foundation Head of Advocacy Gavan McFadzean said in a statement that fracking the Beetaloo Basin could be the most destructive and irresponsible gas project ever proposed in Australia and called for the federal government to ensure that water resources are protected. ■