Northern Territory motorists pay almost 32 times more in car registration fees to the NT Government than the gas industry pays in royalties, a new report by the Australia Institute shows, while a gas industry report says natural gas is essential to the Territory’s energy security and economy, calling for a Territory minister for gas development and legislation to prevent legal action against projects.

The Institute’s Australia’s Great Gas Giveaway paper by Mark Ogge, Rod Campbell, and Piers Verstegen states that there was $37 billion worth of liquefied natural gas exported out of Darwin over the past four years, but the gas industry did not pay any royalties for this gas and paid no petroleum tax.

The report estimated the NT Government could have raised $3.36 billion in revenue if royalty arrangements from other Australian projects were applied to the NT gas export projects. But gas royalties are only paid on gas extracted and used in the Territory, which was just $2.6 million in 2023, equivalent to 0.04 per cent of NT Government’s revenue.

While the national gas exports over the last four years are estimated at $265 billion, $149 billion was royalty-free, at a cost of $13.3 billion in total lost revenue to Australia, the authors said.

The report said the gas industry pays little in federal tax with the combined tax payments of Chevron, Exxon, Woodside and Shell amounting to less than the beer excise.

Australia Institute principal advisor Mr Ogge said gas companies had been ripping off Northern Territorians and that NT motorists contribute 32 times more revenue to the NT Government than the gas industry.

“It is staggering that Northern Territory motorists contribute a whopping 32 times more revenue to the NT Government than the gas industry does. These corporations make tens of billions of dollars annually selling gas that is owned by the public,” Mr Ogge said.

“These corporations make tens of billions of dollars annually selling gas owned by the public.

“The gas industry is fond of discussing its economic importance, but the data tells a very different story. Our research shows that Territorians receive few benefits from gas export.

“If the foreign-owned gas companies paid their fair share, the NT could potentially have more teachers, health workers, schools, hospitals, and renewable energy, offering a hopeful vision for the future.

“Taxes and budgets are about choices, and the NT Government can choose to help the community, or it can choose to give foreign-owned gas corporations a free ride.”

Meanwhile, the gas industry through its representative body Australian Energy Producers, released a “strategic plan” for the NT which covers energy security, the economic and employment potential of gas, and calls for streamlining approval processes to bring on new gas supply sooner, incentivising and supporting low-emission technologies, and supporting a strong LNG export industry.

It did not provide figures for royalties and only mentioned the word once in the document, but said a Deloitte Access Economics report from 2023 found natural gas provided 86 per cent of power generation in the NT, provided $5.8 billion in annual economic activity, and supported more than 6,000 local jobs. It said the NT Government claimed that by 2030 the figure could be $6.8 billion and 60 per cent more local jobs.

It called on the next NT Government to support the successful expansion and operation of new gas developments and pipeline infrastructure in the Beetaloo Basin and resolve reserved area restrictions as a priority.

It also called for the creation of a dedicated minister and department for new gas developments, investment in infrastructure such as roads, rail, pipelines, waste, and health services to support gas development in remote areas, and to declare gas pipelines as critical infrastructure for safety and security and ensure more timely approvals.

AEP also called for the government to investigate legislation that would seek to prevent vexatious challenges against critical or strategic energy projects, also called for carbon capture and storage legislation to be created as a priority that sets out a clear and robust regulatory framework.

“At the centre of the plan, we make clear that industry needs streamlined approval processes to bring on new gas supply sooner and deliver energy security for the Territory,” AEP NT director David Slama said.

“In addition to the Territory’s LNG export sector being a major economic driver, growing the onshore gas industry is key to the Territory becoming financially independent.”

NT paediatrician Dr Louise Woodward said the Chief Minister claimed Territorians must sacrifice health for the gas industry to pay for hospitals and schools, but asked if the gas industry was not paying its fair share of royalties or tax, how would they be funding hospitals and schools?

“Inpex is releasing dangerous amounts of toxic pollution into the air, significantly increasing the disease burden for the people of Darwin and Palmerston. This is a cause for serious concern,” Dr Woodward said.

Ethical Adventures owner and founder Rob Woods said the environment would be damaged with gas development for little return.

“The Territory’s unique natural environment is our greatest asset and the foundation of our tourism industry,” Mr Wood said.

“It’s madness to ruin it for gas projects that not only deliver few benefits to Territorians, but drive up prices, rents and disrupt local businesses.”

Editor’s note: This story has been updated. Previously the article said Northern Territory motorists paid 32 per cent more in car registration fees to the NT Government than the gas industry pays in royalties. We apologise for the error.