In short:
A cyclone-damaged gas well has compounded growing financial pain for the NT government-owned Power and Water Corporation.
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well → damage → Corporation
What's next:
The utility says its current supply arrangements were "sufficient" to service Territory Generation's supply requirements for the foreseeable future.
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arrangements → say → future
A major gas platform off the Northern Territory coast remains closed nearly a year after receiving cyclone damage, forcing the power utility to buy emergency gas well above market rates to keep the lights on.
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platform → remain → lights
The NT's Power and Water Corporation (PWC) has lost more than $500 million over three years, according to its 2025/26 financial report, with a $233 million pre-tax loss last year, up from $173 million the year prior.
uncertain
Corporation → lose → million
The document attributed poor performance to "high energy costs, following the purchase of emergency gas at elevated prices due to the curtailment of supply by the corporation's main supplier, Eni".
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document → attribute → supplier
The matter has been the subject of a long-running legal battle, with PWC seeking damages from Eni "for losses incurred as a result of the reduced gas supply".
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PWC → run → supply
PWC's report said the case had been referred to arbitration and "proceedings have been positive," noting the recovery of any losses "remains dependent on the outcome of the arbitration process".
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recovery → say → process
Blacktip's malfunction created a shortfall that has forced the government to buy emergency gas from exporters Santos and Inpex at much higher prices, to ensure supply.
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that → create → supply
Energy analyst Rick Wilkinson said the two LNG exporters were providing "about a third of the Northern Territory's gas".
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exporters → say → gas
"There's no question that they've stepped in at a time when without that, there would be blackouts coming through the NT," Mr Wilkinson said.
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Wilkinson → be → NT
He said both exporters must also meet existing obligations to their offshore customers.
"The problem is they don't have enough gas to fill the ships and make their own LNG contracts that are in Japan and North Asia," Mr Wilkinson said.
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Wilkinson → say → Japan
Before Blacktip started malfunctioning, PWC's gas division profited from selling excess gas on the wholesale energy market.
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division → start → market
Gas was historically exported to the east coast using the Northern Gas Pipeline, which was later modified to flow in the opposite direction.
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which → export → direction
In June, the NT government raised power prices by 5.3 per cent, citing inflation and the rising cost of subsidies linked to the gas supply challenges.
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government → raise → challenges
At the time, NT Treasurer Bill Yan said gas expected to be supplied from the Beetaloo Basin in the second half of 2026 would come at "good rates".
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gas → say → rates
Data from the Australian Energy Market Operator (AEMO) shows no gas has flowed through the Bonaparte pipeline connecting Blacktip to the NT gas network for at least three months.
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gas → show → months
In a statement identical to one provided to ABC Rural in January, a spokesperson for Eni said "Blacktip facility is currently shut in, as the platform was hit by Cyclone Fina".
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platform → provide → Fina
"Force Majeure has been declared while repairs and activities to restart production are on-going," the statement said.
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statement → declare → going
Mr Wilkinson said the facility's issues started several years ago, and the cyclone was not entirely to blame.
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cyclone → say → ?
"I think the cyclone was a good reason to shut down and stop and think about it all, but it's not the sole reason for the shortfall," Mr Wilkinson said.
"
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Wilkinson → think → shortfall
It's our view that the amount of reserves has been well short of what they expected when they kicked off the project, so they've had some technical difficulties and clearly they can't meet the production requirements of the NT.
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they → expect → NT
"
Mr Wikinson said at the peak of its productivity, Blacktip was providing about two-thirds of the gas for the Northern Territory, while the remainder came from central Australian gas suppliers.
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remainder → say → suppliers
In a statement, PWC said the Territory's gas-fired generators were currently "wholly supplied" from suppliers other than Eni, and that its current supply arrangements were "sufficient" to service Territory Generation's supply requirements for the foreseeable future.
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arrangements → say → future
The Aporia