Gas service and supply plan
We have a vision that by 2030 the Territory will be a world class gas production, manufacturing and services hub.
Supporting this, we have a five point plan to:
- expand Darwin's LNG hub
- grow the service and supply industry
- establish a gas-based processing and manufacturing hub
- grow local research, innovation and training capacity
- contribute to Australia's energy security.
Growing the Territory's gas service and supply industry and maximising local content is key to building a vibrant and resilient economy.
This plan is about delivering jobs, growth and benefits for all Territorians.
We have a goal that by 2025 local participation in the gas industry supply chain will double to at least 50%.
This has the potential to add an additional $1 billion to the Territory economy over the next ten years.
Fifteen years ago the Territory’s gas service and supply industry was just starting to establish scale with the development of Darwin LNG.
Now, the Territory supports three LNG projects and related service and supply work is worth an estimated $400 million per annum1. Local businesses are currently capturing around $100 million of this work annually.
The Territory is working hard to develop our resources and diversify into gas manufacturing to deliver more jobs, growth and benefits for Territorians.
Onshore exploration and appraisal of the Beetaloo Sub-basin has recommenced, and based on Queensland’s experience2, the size of the opportunity for Territory businesses could grow many fold as the onshore gas industry develops.
This will be achieved through the three pillars of the gas service and supply plan:
- strengthen the commitment to local content by gas operators and contractors
- grow the local workforce and business capability, and
- strategically develop the service and supply ecosystem.
- Strengthen self-reporting by gas operators and contractors on Northern Territory contract spend and proportion of local content.
- Encourage and increase the use of government-sponsored services such as ICN NT, AusIndustry, and workforce training programs.
- Establish an Onshore Gas Supply Chain Working Group to collaboratively increase local content.
- Strengthen gas operators and contractors commitment to the Territory Benefit Policy.
- Engage with gas operators and contractors to improve procurement practices that increase local content.
- Leverage the advantages of the Offshore Supply Chain Working Group, focused on increasing local content.
- Support and empower business to strengthen their strategy, planning and systems.
- Provide business avenues to develop tendering strategies and approaches for success.
- Partner with training organisations to build the Territory’s workforce capacity to increase workforce participation.
- Build on ICN offshore study, initially focusing on contracts where Northern Territory (NT) capacity exists and can compete.
- Build on ICN onshore study, focusing on businesses that have capacity to deliver.
- Support and empower NT service and supply businesses to be ‘export ready’.
- Partner with Australian Government (for example, AusIndustry) to deliver programs that build NT business capability and competitiveness, and enable businesses to overcome barriers to local industry participation.
- Work with Land Councils, local governments and communities to maximise local employment opportunities that support the industry.
- Facilitate partnership pathways with proponents, contractors and industry bodies to strengthen business relationships.
- Facilitate the development of Darwin’s ship lift and marine industry park.
- Identify and promote a pipeline of potential service and supply investment opportunities (for example, proppants and water management).
- Development of infrastructure ‘activation projects’, working with proponents and government (for example, Northern Australia Investment Fund support).
- Drive the development of service and supply export opportunities in our region.
- Identify and facilitate investment opportunities in enabling infrastructure (for example, common-user facilities).
- Drive Middle Arm Industrial Precinct planning to facilitate the establishment of a gas-based manufacturing sector.
- Promote successful infrastructure case studies to build the Northern Territory brand and reputation.
- Investigate policy, regulation, strategy and marketing strategies to support the development of the oil and gas industry.
To help Territory businesses capture opportunities, government continues to facilitate and invest in enabling infrastructure including:
- ship lift
- Marine Industry Park
- renewable energy supply
- Middle Arm Industrial Precinct - planning and servicing.
The Industry Capability Network (ICN) has prepared a report that identifies the scope and scale of emerging opportunities for Territory businesses in the onshore gas sector.
Statement of capacity Northern Territory (NT) onshore gas support industry, through extensive desktop research and field studies of the onshore industry in Queensland and the USA, identified 118 work scopes needed to support the success case in an onshore gas industry.
The report concluded that the NT service and supply sector has a very high capacity to meet the majority of these work scopes, and identified potential gaps in speciality areas.
To read this final report, go to the ICN website.
Winnellie Hydraulics is a proudly local, family-owned business, established by Richard Nicholson in Darwin in July 1983. Winnellie Hydraulics has built its reputation from the ground up as ‘the go-to’ specialist hydraulic company, in the Northern Territory (NT).
The company remains in the family with Max Nicholson (Richard’s son) now serving as general manager with a focus on maintaining the company’s first-class service levels and strong reputation in the industry. Winnellie Hydraulics is passionate about its business with innovation and continuous improvement at the forefront of its purpose to service large resources industries and companies across both the NT and beyond.
Originally specialising in the service of hydraulic components in the transport, commercial fishing and earth moving industries Winnellie Hydraulics grew with the rest of the Territory to develop a name for itself amongst the larger resource industries as they began to expand their presence around the NT.
View the transcript of the gas service and supply plan: Winnellie Hydraulics video.
View the full transcript of the gas service and supply plan: Winnellie Hydraulics video.
For further information on the plan contact the Oil and Gas Development team on:
1 Source: ICN Industry Capability Mapping and Gap Analysis Offshore Gas Industry 2019
2 The scale of growth is based on modelling from Queensland - Lawrence Consulting, 2019. Economic Impact of Queensland Petroleum and Gas Sector 2011-18 (prepared for APPEA).
Last updated: 29 October 2020
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