Resources minister urged to correct claim Beetaloo gas emissions will be offset

Research suggests about 95% of emissions from Northern Territory gas projects this decade would not need to be offset under current rules

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Resources minister Madeleine King is facing calls to correct her claim that all greenhouse gas emissions from developing the Beetaloo gas basin in the Northern Territory will be offset, after research found most projected emissions from the basin's gas projects would not need to be offset under existing policy.

Speaking at the National Press Club in Canberra on Wednesday, King defended her support for the Beetaloo basin south of Darwin after being asked whether she was comfortable with the impact its emissions would have on Australians. She described the basin as a very important resource for the Northern Territory and for supplying gas to Australia's east coast and export markets.

King said the development followed a landmark 2018 scientific investigation into fracking, known as the Pepper inquiry, which made 135 recommendations including that onshore shale gas developments should not increase the country's total emissions. In practice, that would require pollution from extraction, processing, transport and the fuel's use to be fully offset.

“My understanding from those recommendations is that the emissions are accounted for and offset, but I would have to check that,” King told the press club.

The Northern Territory government does not require emissions from the Beetaloo basin to be offset. The Guardian reported that the previous Labor territory government dropped the requirement after the gas industry objected, and the Country Liberal party government, elected in 2024, has maintained that position.

Some emissions from gas developments in the NT must be offset under the federal safeguard mechanism, which applies to facilities emitting more than 100,000 tonnes of carbon dioxide a year. But that applies only to direct pollution from the facility, not the full lifecycle emissions covered by the Pepper inquiry's recommendation.

Research by Tim Baxter of the consultancy Naru Research found about 95% of emissions expected from four gas projects in the basin this decade would not have to be offset. Baxter said King either “isn't across her brief or she's being intentionally misleading”.

King said the safeguard mechanism would be applied to Beetaloo developments if emissions were above the threshold. “That is how we manage dealing with emissions in this country,” she said.

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Analysis

Why This Matters

  • The Beetaloo basin is central to Australia's gas supply and export plans, and its climate impact has been a point of sustained political debate.
  • If most emissions from the basin's projects would not actually be offset, the minister's public account of the development's climate impact is misleading.
  • The Pepper inquiry's recommendation was intended to prevent new onshore gas from increasing Australia's total emissions; current policy may not deliver that outcome.

Background

The Beetaloo basin is a large onshore shale gas region south of Darwin, developed after a government-commissioned inquiry in 2018 into whether fracking should be allowed in the Northern Territory. The inquiry, known as the Pepper inquiry, made 135 recommendations, including that the NT and Australian governments aim to ensure onshore shale gas developments did not increase the country's total emissions. The NT government later dropped a requirement for Beetaloo emissions to be offset after objections from the gas industry, and the Country Liberal government, elected in 2024, has kept that position. The federal safeguard mechanism covers only the largest direct emitters, which is why most projected emissions from the basin would not need to be offset.

Key Perspectives

Minister and federal government: King defends the basin as important to the Northern Territory and to Australia's east coast gas supply, and says the safeguard mechanism is how Australia manages emissions. NT government: Requires no offsets for Beetaloo emissions, a position maintained since the Country Liberal party took office. Researchers and critics: Tim Baxter of Naru Research says about 95% of this decade's expected emissions from four projects would not be offset, and has accused the minister of being misinformed or misleading.

What to Watch

  • Whether King follows up on her stated intention to check the basis of her claim and clarifies or corrects it.
  • Future NT or federal decisions on offset requirements for Beetaloo gas projects.
  • Whether any Beetaloo projects pass the 100,000-tonne threshold and become subject to safeguard mechanism obligations.

Sources

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