The Finocchiaro CLP Government is warning Top End residents of possible rolling power outages following cyclone damage to ENI’s Black Tip gas production facility, however a Power and Water executive says it’s essentially “business as usual” given the Black Tip facility has failed to produce gas on many occasions over the last five years, forcing the energy provider to enter into gas supply agreements with other companies and using diesel as a last resort.

Deputy Chief Minister Gerard Maley said on Friday that ENI had to shut down the Black Tip gas platform following Tropical Cyclone Fina causing damage, resulting in gas production that feeds the energy grid coming to a halt.

“This is a significant problem because our generators run off gas,” he said. “At the moment, we’re relying on Central Petroleum to be able to put gas into the Amadeus pipeline and run up into the Northern Territory.

“This is a major concern because if we run out of gas, we’ll be forced to burn diesel and we know diesel could be more than twice as expensive that using gas to power our generators over Christmas.”

He said if it gets to the point of using diesel, then “we’ll have to load shed, which will mean blackouts across the Darwin and capital network”.

However, Power and Water deputy chief executive John Pease said rolling blackouts are “unlikely”, but if determined to be necessary, suburbs in the Greater Darwin region would be given 24-hours notice and the power could be out for an hour at a time.

“Rolling load shedding is but one of the parts of the contingency planning that we’ve put in place,” he said.

“In the unlikely event that we needed to resort to load shedding, what it involves is rolling suburbs for a limited duration, the power being turned off to minimise disruption to all Territorians.”

Mr Pease said Power and Water had “seen what’s been happening” with the gas shortages at Black Tip over the last five years and have developed contingency plans, including “enhanced and new gas supply arrangements with a number of suppliers”, including gas from Inpex when needed to keep the lights on.

He added the northern gas pipeline has also been changed to enable gas to flow from the East Coast if the NT needs it.

“We’ve seen a reduction in output from the black tip field over the last five years, which is why we’ve stepped up the contingency planning that we’ve put in place,” he said.

“All of those plans are there to address any issues, whether they’re planned or unplanned, and we’re simply applying the measures that we put in place.

“So it’s really, I don’t want to say business as usual, but it’s business as usual in operating an electricity system.”

Mr Pease said gas provider ENI had closed the facility prior to the cyclone as a precautionary measure and “was assessing the damage to a platform” at the Black Tip facility of the coast of Wadeye, adding “our expectation is that they’ll reopen”, but could not say how long that would take.

“We’re waiting for their report on precisely what the damage is and what will be involved to repair it and restore Black Tip to operations,” he said.

He would not disclose what Power and Water is paying Inpex or other providers for emergency gas, citing commercial in confidence reasons.

Mr Maley used the opportunity to spruik fracking the Beetaloo Basin, suggesting Labor’s moratorium on fracking while a review was conducted delayed supply. Labor entered into a deal with Beetaloo Energy (formerly Empire Energy) to supply gas to the Territory as well as a deal with Tamboran Resources, the cost of both has not been disclosed but is suspected to be worth billions.

“We’ve given them [Beetaloo Energy] support to be able to get them online as quick as possible,” he said.

“And we are fortunate it’s going to happen mid next year.

“So, look, this a great result for the CLP because gas is going to come out of the ground and it’s going to supply generators next year. If we didn’t have that we’d be in a world of hurt because we know ENI has been declining and this is a backup plan that we’ve put in place.”

Asked about the government’s press release that suggested rolling blackouts were a real possibility, while Power and Water said it was “unlikely”, Mr Maley said “we’re here to be open and transparent”.

“I’m here today to talk about it as a concern,” he said. “We do have a backup plan. We want to make sure Territorians know that we are prepared for this, but it could include load shedding, if required into the future over Christmas.”

Greens MLA Kat McNamara said the government was using the damage at Black Tip to “build support for Beetaloo”.

“Both the CLP and Labor have utterly failed Territorians,” McNamara said. “We should have cheap, reliable renewable power but instead our governments have locked us into unreliable, expensive gas.

“If successive governments had done their jobs and prioritised renewable infrastructure we would never be in this position.

“Territorians are footing the bill so that the gas industry can pocket billions for their exports, while we are left without a stable grid and high cost of living pressures. There is no legitimate reason for us to continue to rely on gas, the renewables technology exists, it’s just down to political will.”

McNamara added that “the corporate capture of our politicians by gas corporations” was costing Territorians and “delaying the transition further”.