The Territory’s gas industry will receive close to $20 million to open up exploration in the NT’s Beetaloo Sub-basin, Federal resources Minister Keith Pitt announced at an industry dinner Tuesday night, just two months after previous grants were ruled invalid by the Federal Court.

The money, which will be in the form of three grant agreements worth a combined $19.4 million, comes just two months after the Federal Court ruled that a previous $21 million in grants for Empire Energy’s subsidiary Imperial Oil and Gas, were invalid and “unreasonable” due to the government quietly awarding the money while a court challenge was underway.

The Environment Centre NT had argued that Mr Pitt had failed to consider the climate risks associated with his decision to award the money to Imperial, also through three grants totalling $21 million in July last year, in their original court filing, but that was not upheld and the judge rejected their challenge to the validity of the grants program as a whole.

Mr Pitt told the dinner arranged by the NT Energy Club on Tuesday night that the new $19.4 million in grants through the Beetaloo Cooperative Drilling Program to Imperial will “support exploration company Imperial Oil & Gas to continue drilling three petroleum exploration wells” and was necessary “following the conclusion on the recent Federal Court action”.

He said the new grants were part of the Coalition’s gas-led economic recovery.

“The government is committed to a gas-led recovery and we are now getting on with the job of opening up the Beetaloo as part of the Strategic Basins Plan and these grants will assist in that important process,” Minister Pitt said.

“Australian gas is in high demand domestically and internationally and it’s important that we work to get new gas production online.”

ECNT Co-director Kirsty Howey said the latest taxpayer-funded grants were “a slap in the face” for Territorians.

“To turn around and re-award these grants goes against public expectations about how taxpayer money should be spent,” Ms Howey said.

A couple dozen anti-fracking protesters picketed outside the industry dinner where Mr Pitt was speaking via video link after having to cancel his in-person appearance due to a COVID infection. They also raised concerns about the use of public money for private companies and the Territory’s water resources.

Mr Pitt appeared to acknowledge them, stating that “activists … threaten future energy security”.

“Activists trying to stop or delay crucial gas projects threaten future energy security both here in Australia and in countries around the world that rely on our LNG exports,” he said in a statement.

“The Beetaloo Sub-basin has the potential to be a world class gas resource, that could create thousands of jobs and bolster domestic and international gas supply.

“Development and investment in the Beetaloo could be a game-changer for the Northern Territory, creating up to 6,000 jobs by 2040, supporting industrial diversification and providing stable tax and royalty streams for years to come.”

Empire Energy welcomed the new grants and said they were on “materially similar terms to those entered into previously” and that all work program approvals are in place. The company added that the funds would “offset 25 per cent of the cost of seismic acquisition and the drilling, fracture stimulation and flow testing” of the three wells on its EP187 tenement.

In December, the Federal Court ruled the original grants invalid because the minister had executed the grant agreement while the court challenge was underway and without notifying the ECNT, that could have permitted them to seek an injunction, but had ruled the grants program overall was valid and further funding could be awarded.

ECNT told the NT Independent they are currently weighing their options on whether or not to challenge the latest grant and have not taken any further legal action.