Northern Territory expands on agricultural opportunity
TUESDAY SEPTEMBER 15, 2015
15th September, Darwin, NT: Accounting for more than $3.2 billion toward the Northern Territory economy during the 2013-14 period, Territorians have benefited generously from its numerous oil and gas developments.
The territory’s largest oil and gas venture, Ichthys LNG Project, is expected to produce 8.4 million tonnes of LNG and 1.6 million tonnes of LPG per annum, along with more than 100,000 barrels of condensate per day at its peak.
However with a prolonged collapse in oil prices over the past few months and with a large portion of the Northern Territory’s new oil and gas expansion relying on the exploration of unconventional gas and oil supplies, business and government leaders have focused their attention on cultivating alternative opportunities.
The recently released Agricultural Competitiveness White Paper offers extensive promise in developing the territory’s agricultural sector, with a dedicated $4 billion aimed at increasing the viability and sustainability of agricultural development.
Details outlined within the white paper aim to provide improved legal and tax regulation for farmers, develop sufficient infrastructure for the delivery and irrigation of water, strengthen drought and risk management responses, grant technologies and forums to develop more efficient farming practices, as well as improve ties with other nations to establish international trade partners.
The CSIRO estimates northern Australia contains some 17 million hectares of arable land, only 1.7 million hectares of which is accessible due to insufficient water infrastructure. The white paper outlines a $500 million National Water Infrastructure Fund for farmers’ future water security; $450 million of which has been designated to the construction of national water infrastructure.
Northern Australia receives on average more than 7.5 million litres of rainfall each year; comprising of 60 per cent of the national total. In contrast, roughly 65 per cent of northern Australia’s rainfall evaporates or is used by plants before it can be recharged into groundwater or flow into nearby water streams.
Agriculture is not only of particular importance to our national food and water security. It also presents a prime economic opportunity for the exportation manufactured goods and produce to surrounding nations close within the Asia Pacific, especially regarding China’s Maritime Silk Road initiative.
The Agricultural Competitiveness White Paper also provides support for drought preparation, with up to $250 million in drought concessional loans each year over the next 11 years, as well as an additional $35 million towards local infrastructure projects to help communities suffering from drought.
Prominent members from both government and industry will gather at the Northern Territory Major Projects conference held this October to discuss agricultural options and promote initiatives that explore industrial sectors outside of oil and gas.
These measures coincide with the recently announced Northern Australia White Paper, which aims to define economic prosperity for the region. Additional plans outlined within the white paper aim to make it easier for companies to consult and collaborate with indigenous communities, encourage more welcoming investment environments, as well as reduce barriers for employment within the territory.
The Northern Territory government has already committed $1.39 billion to the delivery of public infrastructure works as part of the 2015-16 budget. This is in addition to the Federal government’s $5 billion loan program for the construction of major infrastructure such as ports, roads, rail, pipelines, and electricity and water supply.
More details of the conference are expected to be announced closer to the event. The 6th Annual Northern Territory Major Projects Conference is being held at the Darwin Convention Centre on the 6th & 7th of October.
