The Northern Territory's massive gas reserves have been compared to the US shale gas resources that transformed America from an energy importer to exporter.
The NT holds enough natural gas to supply Australia for 200 years-plus, Resources and Northern Australia Minister Matt Canavan says.
Such abundant gas should enable Australia to reduce its current high energy prices, which were the fault of southern states preventing development, Senator Canavan told an NT Resources Week conference in Darwin on Wednesday.
The NT government lifted a ban on the controversial practice of hydraulic fracturing to access onshore gas this year, which is banned in Victoria and much of NSW.
Geoscience Australia estimates the NT has about 257,000 petajoules of shale gas to meet Australia's demands for 200 years, Senator Canavan said.
Chief Minister Michael Gunner said he had been told by energy companies that figure could be double with the Beetaloo Sub-basin.
"There is more than enough gas in the Beetaloo to both export to demand overseas, to help out our fellow Australians and to support a gas manufacturing, value-adding industry here in Darwin," he told reporters.
Senator Canavan described Beetaloo, located southeast of Katherine, as "a world class shale resource rich in liquids that is comparable to US shale resources which have been so critical in turning around the US energy market and manufacturing sector".
"The most amazing transition occurring in global markets is a geopolitical one," he said.
"This has enormous implications for global trade and politics."
Darwin wants to establish itself as a hub for gas exports, related services and "value-adding" manufacturing - possibly with investment from China - by offering cheap energy that would create jobs.
Senator Canavan criticised the NT government's plan to introduce a new "hybrid" royalty scheme that the industry says will increase what they pay and discourage investment.
Australian Associated Press
