NT Gas Deal Raises Concerns Over Transparency and Competition
The Northern Territory government's decision to award a major gas supply contract to US-based company Tamboran Resources without a tender process has sparked concerns over transparency and competition.
Central Petroleum, the only onshore gas producer in the NT, was excluded from bidding for the contract, which will supply nearly two-thirds of the territory's gas demand from 2026. The cost of the deal, which is subject to environmental and financial approvals, has not been disclosed to the public.
Central Petroleum CEO Leon Devaney expressed surprise at the government's decision, questioning why a more competitive process was not undertaken. He claimed his company could have easily met the NT's gas needs and was unable to secure any meaningful engagement with the government.
Energy analysts and legal experts have also raised concerns about the lack of transparency surrounding the deal. Tom Quinn, an analyst at Springmount Advisory, warned that the agreement risks repeating the mistakes of a similar gas deal struck 12 years ago, which has resulted in supply issues. He emphasized the need for an open tender process and competitive bidding to ensure the best value for consumers.
Professor John Swinson, a privacy law expert at the University of Queensland, questioned the government's justification for withholding the details of the contract under commercial-in-confidence. He argued that other countries, such as Canada, attract investment while publishing government contracts in full.
NT Chief Minister Eva Lawler defended the government's approach, stating that other gas companies will have the opportunity to make deals in the future. She emphasized the importance of diversifying the territory's gas portfolio and welcoming new players like Tamboran.
However, the lack of transparency and competition in the Tamboran deal raises concerns about the government's commitment to securing the best value for taxpayers and ensuring a reliable gas supply for the NT.