The Beetaloo Basin in the Northern Territory (NT) has been touted as a promising, world-class shale gas resource. Reflecting this potential, the Australian government announced in January 2021 its intention to support the development of the Beetaloo Basin as part of the Beetaloo Strategic Basin Plan and the National Gas Infrastructure Plan.

This included the government establishing a A$50 million fund to support A$200 million of exploration activity by mid-2022, to stimulate the search for commercial gas resources in this remote part of Australia (where roads and other infrastructure are lacking). This is in addition to almost A$1.5 billion allocated to the Middle Arm Sustainable Development Precinct (MASDP) and related regional logistics hubs in the NT. Documents released under Freedom of Information (FOI) show the capital costs of Middle Arm of up to A$3.7 billion.

This analysis suggests that these projects may have low economic value, with high costs and risks, and uncertain returns.