Potential Energy

The Northern Territory is engaging Japan in a series of initiatives, with particular focus on its strengths in tourism and energy.

“I have been spelling out that Timor Sea gas is a significant resource, with 21 trillion cubic feet of gas already proven,” says the Territory’s Chief Minister Clare Martin. “Now is the time to talk about the next phase of development.”

In November 2004, the Chief Minister travelled to Japan, meeting key Japanese companies including potential customers of LNG (liquefied natural gas) and other products, investors in all phases of development, and those that own part of the gas resources in the province.

“The next phase will involve fields like Evans Shoal, Abadi, Sunrise and potentially Caldita, and I want to make sure that the Territory is able to maximise the jobs and economic growth opportunities,” she says. “In Japan we are also saying that the Territory Government has a gas strategy made up of four key components that are central to any future gas-related development.”

The four components in the strategy aim to provide gas for additional LNG export, for power generation for major mineral processing projects and the Power Water Corporation, and for future gas-based manufacturing. It would also have the potential for gas supply to the national energy grid.

The Territory is rich in other natural resources, with significant minerals including:

• bauxite – with Australia’s third largest bauxite mine;
• gold – with major operating mines in the Tanami Desert and Pine Creek areas;
• manganese – including the world’s third largest producer of manganese ore;
• zinc, lead and silver – with one of the world’s largest known ore bodies;
• magnesite – a major resource in the Batchelor area;
• diamonds – with prospective indicators for substantial undiscovered fields; and
• uranium – with deposits at Ranger, Jabiluka and Koongarra.

Tourism growth

Tourism is an increasingly important sector of the Territory’s economy. With a unique environment, natural beauty, abundant wildlife and ancient Indigenous culture, Australia’s ‘Top End’ and ‘Red Centre’ offer a destination-rich environment that includes Uluru (Ayer's Rock), ‘The Ghan’ railway, and the Territory’s almost 100 parks, reserves and sanctuaries, including the vast Kakadu National Park.

Two of the largest Japanese tourism wholesalers, Kintetsu International and HIS, commenced direct charter flights from Haneda to Alice Springs in August 2003.

“Currently, around 53,000 Japanese tourists visit the Territory each year contributing a significant boost to the local tourism industry,” said Clare Martin at a 2004 Tokyo meeting with key Japanese tourism industry representatives. “I believe there is strong potential to increase that number... Along with the need for greater air capacity, the challenge is to ensure Japanese tourists are informed about all the Territory’s attractions and not just Uluru.”

Darwin’s tourism infrastructure, for example, is receiving a boost through a proposed A$600m Darwin Waterfront Development, incorporating a new cruise ship facility, a world-class convention centre, plus retail and residential opportunities across a 25-hectare CBD site.

This is just one side of the city’s positioning as Australia’s Asian gateway. Unique in being Australia’s only capital city in the tropics, Darwin is ideally placed to act as a transport and communications nexus between Australia and the wider Asia region. With its modern international airport, world-class seaport facilities, national rail links and expanding LNG infrastructure, the city has set its sights on becoming a global energy centre.

For freight, the AustralAsia Railway links the national rail network of Australia’s southern and eastern states to a terminus at the Port of Darwin, creating a truly national rail system for the first time in Australia’s history. FreightLink has a target of 350,000 tonnes of freight in the railway’s first year of operation.

The Port’s East Arm Peninsula business park is becoming a base for transport, trade management and cold storage companies. Initially 50 hectares, stage two of the business park will open up a further 50 hectares to development. In a boost for the East Arm Peninsula, an agreement has been reached between Vopak Terminals Australia and major fuel distributors BP, Mobil and Shell that will see the demolition of the tank farm in Stuart Park and the
construction of a new fuel and bulk liquids terminal at the East Arm Industrial Zone.

The Territory has many other strengths, including a significant defence sector and a vibrant food and agribusiness industry that has been supplying the Japanese market with four types of mangoes since 1999. In overall exports, the Northern Territory boasts the second highest exports per capita of any Australian region, and a trade surplus of more than A$1.7bn.

>> www.nt.gov.au
>> www.nttc.com.au