Central Petroleum Excluded from NT Gas Supply Contract
Central Petroleum, a gas producer in the Northern Territory, has expressed surprise and concern over its exclusion from a major gas supply contract awarded to US-based company Tamboran Resources. The contract, which has not been publicly disclosed, will see Tamboran supply nearly two-thirds of the territory's gas demand from 2026.
Central Petroleum CEO Leon Devaney stated that the company had attempted to negotiate a similar deal with the NT government but was unsuccessful. He questioned the lack of transparency and competitiveness in the process, suggesting that a more open tender would have been beneficial.
Devaney also raised concerns about the potential risks associated with the deal, citing the example of the Blacktip gas field, which has faced supply issues in recent years. He emphasized the importance of having a diverse portfolio of gas suppliers to mitigate such risks.
Energy analyst Tom Quinn echoed Devaney's concerns, highlighting the lack of transparency and the potential for repeating past mistakes. He advocated for an open tender process to ensure the selection of the best value projects and lower energy bills for consumers.
University of Queensland privacy law expert John Swinson criticized the government's secrecy surrounding the deal, arguing that it raises concerns about potential favoritism and lack of competition. He pointed to other countries that successfully attract investment while maintaining transparency in government contracts.
NT Chief Minister Eva Lawler defended the government's approach, stating that negotiations are ongoing with other gas companies, including Central Petroleum. She emphasized the importance of diversifying the territory's gas supply and welcoming new players into the market.
However, the lack of transparency and the potential risks associated with the Tamboran deal remain a cause for concern for many stakeholders. The NT government's decision to award the contract without a competitive tender process raises questions about accountability and the best interests of the territory's energy security.