Australian government plans new LNG terminal in Darwin

The Australian conservative coalition government today pledged to spend up to A$1.5bn ($1.12bn) to build a LNG export terminal as part of new port infrastructure at Darwin in the Northern Territory (NT).

The plan includes additional facilities to manage hydrogen exports and critical mineral processing, as well as refinery capabilities. The pledge is based on the coalition winning the 21 May federal election.

The Liberal-National party coalition government sold the existing Darwin port, which includes export terminals for the 3.7mn t/yr Darwin LNG and 8.9mn t/yr Ichthys LNG plants, to Chinese infrastructure and energy group Landbridge in 2016.

Trade and political relations between Australia and China have soured since the Landbridge deal, and Australia has attempted to tighten rules around the sale of strategic assets to China.

"Our investment will deliver this, supporting port infrastructure, including a wharf and offloading facility, and dredging of the shipping channel," Australian deputy prime minister Barnaby Joyce said in Darwin where he was campaigning for next month's election. There is no guarantee that the LNG terminal will be built as many promises are made in the heat of an election campaign.

The viability of another LNG export terminal at Darwin would also depend on finding economic gas reserves. The coalition government is very keen for upstream firms to undertake more exploration work in the onshore Beetaloo basin in the NT. Early-stage geological work has estimated significant gas resources within the Beetaloo basin, which is around 600km southeast of Darwin.

By Kevin Morrison