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Northern Territory bets economic future on sketchy asset

March 25, 2021

Alice Springs News:

A paper published by the Institute for Energy Economics and Financial Analysis (IEEFA) has slammed the NT and Federal Governments for pinning the economic hopes of the Territory to a product that is unlikely to have a profitable future.

They are referring to gas.

As the News reported this week, the NT Government owned Power and Water Corporation has committed itself to paying 4000 million dollars in yet to be accessed gas in a take or pay arrangement through to 2034.

In a statement provided to the paper, Power and Water said there is nothing to worry about: “It should be noted that industry standard gas agreements generally include some form of take or pay arrangements, which are reflected on both gas purchase and gas sale agreements. This only becomes an issue when gas is unable to be sold, which is not the case with Power and Water.”

[Julius Dennis]

More: NT bets its future on an asset in freefall

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