A background briefing paper from the federal Environment Department obtained through freedom of information describes the proposed ‘sustainable’ Middle Arm development “as a key enabler” for the export of gas from the Beetaloo basin, the Guardian Australia has reported.

The Albanese Government has promised $1.5 billion in planned equity towards common-user infrastructure at Middle Arm, and the Guardian Australia said the document described Middle Arm as vital to “be able to expand gas production in the Beetaloo basin and to the viability of upcoming offshore carbon capture and storage such as that of the Barossa offshore gas field and pipeline”.

It said federal Infrastructure Minister Catherine King had said previously the money for Middle Arm was “not a subsidy for fossil fuels” but rather “an important way of setting up our economy for a sustainable future”.

But Guardian Australia said the document, a background briefing paper Environment Department bureaucrats send to Environment Minister Tanya Plibersek’s office in July, said the project was central to the expansion of Beetaloo basin gas production, as well as to the “feasibility” of proposed offshore carbon capture and storage.

The document shows the aim of the Middle Arm facility is to expand the NT’s gas industry, which will include fracking for gas at the Beetaloo basin and Santos’ planned Barossa offshore gas development above the Tiwi Islands.

“Middle Arm precinct is seen as a key enabler for Beetaloo gas to be transported north, further benefitting the Northern Territory’s economy,” the paper said the document stated.

It suggest Middle Arm was also seen as a future a major manufacturing hub for gas, petrochemicals, hydrogen and minerals, and also intended to be used to accommodate new gas, blue and green hydrogen and minerals facilities, and carbon capture and storage.

Guardian Australia said independent senator David Pocock had said the Labor government should reconsider its spending.

“Previous documents have shown a link between Middle Arm and fossil fuels. These documents put it beyond doubt that the facility is intended to enable the development of huge gas projects,” Senator Pocock said.

Green leader Adam Bandt said the document show that Labor was “greenwashing” Middle Arm’s real purpose as a methane gas export hub.

“Labor wants to open new gas projects, paid for by the public.”

“The Middle Arm precinct is designed to allow the Beetaloo to become commercially viable through allowing the export of massive quantities of methane gas to Asia, fuelling the climate crisis and slowing the transition towards hydrogen and renewables,” Mr Bandt said.

Guardian Australia reported an NT Government spokesperson said Middle Arm was being transformed into a development-ready location for investment for industries engaged in renewables, low-emission energy and fuels, advanced manufacturing and low emissions minerals processing.

“The Middle Arm project will also implement circular economy principles. A circular economy is about changing the way products are produced, sold and used to minimise and potentially reuse waste streams, reducing the overall impact on the environment,” the spokesperson said.