The NT Government has signed a deal for fracked gas supply from the Beetaloo Basin.
In a bid to "securing power for years to come" the NTG said it would be purchasing gas from Beetaloo for electricity generation while "backing the growth of the Territory's on-shore gas industry".
The gas arrangements, between the Territory government and Tamboran Resources, are set to provide "competitively priced gas" for the NT's electricity generation.
Chief Minister Eva Lawler said her government was "backing the industries that get the Territory working".
"My Government is supporting the on-shore gas industry," she said.
"My common sense plan will make sure that the benefits from Territory gas are spread right across the Territory for local residents, businesses and industry.
"By making sure that Territory gas powers our electricity generators we are powering the Territory's future for years to come."
Once Tamboran secures access to the necessary pipelines and receives all required permits and approvals, supply to the Territory government is set to become unconditional.
According to the government, the historic deal aims to ensure that Territory residents, businesses and industry will share in the "benefits of our growing on-shore gas industry by delivering cleaner and more affordable natural gas for power generation".
The first gas from the Beetaloo Basin that will be delivered to Territory power generators is expected in the first half of 2026.
The deal will provide gas for nine years with an option to extend for another six-and-a-half years.
It comes as Tamboran Resources is working towards reaching a final investment decision on a pilot project by mid this year - which is a key milestone in the development of the Beetaloo Basin.
Developing the Beetaloo Basin and boosting the NT's on-shore gas industry is set to create "thousands of work opportunities for Territorians and boost the economy by $17 billion", according to the government.
Managing Director and CEO of Tamboran Resources, Joel Riddle, said his organisation was proud to deliver on its commitment to provide a long-term supply of gas from the Beetaloo Basin.
"Tamboran has always promised that our first gas production from the Basin would be to the benefit of Territorians and we are excited to play our part in boosting energy security in the Northern Territory," he said.
"This is a transformational development for Tamboran and our partners, after ten years of hard work and more than $500 million invested in Beetaloo exploration and appraisal activities.
"This represents a major milestone and puts Tamboran on a path where revenue from gas sales will support funding our future development phases, including supply to the East Coast and LNG gas markets."
The proposed project is expected to provide initial royalties to both the Northern Territory Government and Traditional Owners within the region.
But anti-fracking organisations across the Territory have labelled the fracking assessment process in the Territory as "fatally compromised", speaking out against the new deal.
Katherine veterinarian and Protect Big Rivers founder Dr Sam Phelan said the announcement of the Beetaloo deal would show that "the fox is still in charge of the henhouse, with the NT government signing deals to accept gas from a project that it is currently under assessment".
"It makes a mockery of the decision-making process and shows that the Lawler government is willing to risk our water and climate to help Tamboran on the stock market," she said.
"The part of the NT where Tamboran wants to drill its Shenandoah Pilot Project has just experienced widespread flooding.
"Existing and planned frack sites were totally cut off and were obviously flooded. We know fracking contaminates surface and groundwater."
Dr Phelan said the NT public could "not have any faith that we are safe from the known risks of fracking when the Lawler government signs these types of supply deals with companies when their projects ... have not even been approved yet."
Frack Free NT spokesman Pete Callender joined the sentiment.
"Territorians are really worried that the Lawler government is selling our environment and communities down a polluted river while the federal government seems to have its head in the sand.
"Our Federal MPs need to deliver on promises made to our communities on water and climate change.
"If Tanya Plibersek won't proactively use her powers to assess these fracking projects, we're calling on our NT representatives Marion Scrymgour, Malarndirri McCarthy and Luke Gosling to speak to her today, and demand she calls this project in under the expanded water trigger.
"Territorians are relying on the federal government to step in where the Lawler government has so abysmally failed."
The Beetaloo Basin, about 200 kilometres south of Katherine, stretches across 2.8 million hectares and is estimated to contain significant amounts of shale oil and gas that could be recovered using fracking, a process where a high-pressure fluid is injected into bedrock.
In 2018 an NT inquiry found environmental risks could be sufficiently mitigated if a series of recommendations were implemented.
Earlier this year, close to 100 leading Australian scientists and experts called on the Northern Territory to ban gas fracking as a decision looms on the controversial Beetaloo Basin project.
In an open letter published in May, the group said unconventional gas developments should be scrapped because of their "unacceptable impact on the climate".
