Posted: 2022-10-20 20:36:23

The Greens are hoping to use their Senate numbers to pressure the Albanese government to drop its $1.5 billion commitment for a petrochemicals and gas carbon capture and storage hub planned for Darwin Harbour from next week's budget. 

The Northern Territory government is spearheading plans to develop the manufacturing and minerals precinct in Middle Arm, south of Darwin, which would include a facility to convert natural gas into products like plastics and paint.

April's federal budget promised the funding for a new wharf and offloading facility in the area, however it has not been allocated over the forward estimates period.

The federal government has said the hub could also produce green hydrogen.

Environmentalists have been lobbying hard for the budget commitment to be dropped. 

"This Middle Arm project is about making petrochemicals from gas fracked from the Beetaloo Basin," NT Environment Centre Director Kirsty Howey said. 

"It will be a climate and health disaster for the Northern Territory and it's a public subsidy to the fossil fuel industry, pure and simple.

A woman wearing glasses stands in a leafy Darwin backyard, looking slightly concerned.
Kirsty Howey says the petrochemicals hub would be a "disaster". (ABC News: Che Chorley)

"It should not be paid for by the taxpayer."

At the weekend, federal Infrastructure Minister Catherine King said the hub, first promised by former Nationals leader Barnaby Joyce, would be in the budget.

"This is a really substantial build within the marine processing precinct within Darwin, it's a big economic boost for Darwin," she said.

"It's about building a big jetty out to be able to potentially get hydrogen in, and other goods and services in and out.

"It's enabling infrastructure."

Greens threaten to withhold Senate support

The Greens are threatening to use the balance of power to try to pressure the government to drop fossil fuel subsidy promises across the country, including for new gas developments in the NT's Beetaloo and Queensland's Bowen and Galilee Basins.

Greens resources spokeswoman Dorinda Cox said the Middle Arm commitment was the biggest and most unacceptable budget commitment so far.

"The purpose of this project is to facilitate gas coming from the Barossa [gas project off the Northern Territory coast] and Beetaloo Basins," she said.

Dorinda Cox looks straight at the camera.
Dorinda Cox says the government can't continue to publicly fund new gas projects. (ABC Pilbara: Amelia Searson)

"We hold the balance of power, plus one, across the crossbench and there would need to be a serious conversation with us about the validity of this."

Asked whether the party felt so strongly about this particular project that it intended to withhold Senate support over it, she said: "It would definitely be a consideration." 

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