Middle Arm a Dud: Federal Government must pull funding for mass fossil fuel subsidy

The Environment Centre NT welcomes the Federal Government’s new funding announcements for the Northern Territory, but urges the Prime Minister to dump its subsidy for the toxic Middle Arm gas and petrochemical hub. 

Late last year it was revealed that the true cost of the proposed Middle Arm gas hub had spiralled to over $3.5 billion — more than double the amount ($1.5b) initially committed by the Federal Government in 2022. 

While new spending on housing and education is sorely needed, these new commitments amount to less than $2 billion.* This means the Federal Government could be paying more than four times more for a new gas hub in Darwin, than it is committing to new education spending in the Territory.

The Environment Centre NT released  a report last month, Recharging the Territory: Jobs, skills, lower bills, urging the Federal Government to redirect the Middle Arm funding to renewable energy and other climate-friendly industries. 

Executive Director of the Environment Centre NT Kirsty Howey said, “While money for housing and education is a wise investment for the Territory, this stands in stark contrast to the billions of dollars in public funds that will be wasted if the Middle Arm gas and petrochemical hub goes ahead as planned.”

“Middle Arm is a complete dud of a project that will lose money hand over fist. It is nothing more than a massive fossil fuel subsidy that puts our health, harbour and climate at risk.”

 “It is gravely disappointing that the NT Government is using the Federal Cabinet’s visit to lobby for more support for fossil fuels. Middle Arm will be yet another white elephant of northern Australia that sucks taxpayer money away from sectors that deliver meaningful change for Territorians.”

Media enquiries contact: Bree Ahrens 0497 057 647

*Breakdown of Federal Commitments