Northern Territory to fund feasibility study into second Darwin LNG train


The Northern Territory (NT) government has announced a contribution of $250,000 towards a feasibility study into the potential expansion of ConocoPhillips’ Darwin Liquified Natural Gas (DLNG), which could create thousands of jobs in the region.

The mandate of the study is to examine the viability of developing a second LNG train at the Darwin LNG plant at Wickham Point.

NT chief minister Michael Gunner said: “The Territory Labour Government is focused on restoring trust by creating jobs, especially in the private sector, and we believe funding this feasibility study is a good investment.

The first train at Darwin LNG created around 2,500 jobs during construction and more than 8,500 sub-contracts and purchase orders.

Gunner said: "In operation it directly supports more than 250 local jobs and on average around $100 million per year in supply and service opportunities.

“The Territory Labour Government is supporting the feasibility study because this is a significant investment towards the business case for potential expansion at Darwin LNG, potentially creating thousands of jobs during construction and operation.”

This study will explore different LNG process technologies and production rates to support a low-cost development for a second LNG train.

Gunner added: “The Northern Territory has an abundance of natural resources, a large mining and energy industry and major construction and infrastructure projects.

"The Territory Labour Government is focused on restoring trust by creating jobs, especially in the private sector, and we believe funding this feasibility study is a good investment."

“The oil and gas service industry has grown significantly since the commissioning of the Darwin LNG in 2006 and has continued to develop strongly throughout the construction of the Ichthys LNG facility.”

ConocoPhillips Australia West external affairs vice president Kayleen Ewin said: “With Darwin LNG, five upstream joint ventures and the Northern Territory Government involved, it is a pioneering example of all of industry and government collaborating on solutions to unlock major investments.”

Around 40% of the feasibility study costs are covered by grants from the NT government, with the remainder funded by ConocoPhillips and upstream resource owners in Evans Shoal, Caldita-Barossa, Poseidon, Cash Maple and Bonaparte LNG (Petrel Tern).

The study is set to be completed by the end of this year.


Image: Liquefied natural gas plant in Darwin, Australia. Photo: courtesy of ConocoPhillips.