News

Economic News from Darwin – 3 April 2017

2017-03-31 NT News: Now’s the time to buy

4 in 5 Territorians think 2017 is the best time to buy a house… The statistics, released in a new report commissioned by LocalAgentFinder, showed Territorians were the second most positive state in terms of buying a house, following closely behind Western Australia.

2017-04-01 Upstream Petroleum: Evans Shoal field returns to fold

The large Shell-operated Evans Shoal gas field off northern Australia is coming back into the liquefied natural gas fold after several years of hibernation… The field contains 8 trillion cubic feet of gas in place, but has a very high carbon dioxide content of 28% which continues to act as a barrier to development.
Earlier this month, Italian major and partner Eni brought the field back into consciousness by including Evans Shoal on its future projects list… Eni has said in the recent past that Evans Shoal “can be developed as a standalone LNG development or as supply into the Darwin LNG plant”. The joint venture owners are Shell on 32.5%, Eni on 32.5%, Petronas Carigali on 25% and Osaka Gas on 10%.

2017-04-01 NT News: Feds take closer look at gas plan

Federal Government has agreed to a feasibility study on a $1-billion north-south gas pipeline.

2017-03-30 Australian Mining:
Major project status awarded to NT’s Jervois project, more than 600 jobs to come

The Territory government awarded KGL Resources’ Jervois copper-silver-gold project a major project status... for the $190 million project, approximately 270km northeast of Alice Springs. The project is expected to create 360 jobs during construction and 300 ongoing jobs once operational, over its more than 12-year life.

2017-03-27 Media Release: $23 million facilities project to support ADF capability

Minister for Defence Personnel Dan Tehan today announced a $23 million infrastructure project to benefit Queensland, New South Wales and Northern Territory… The project is part of the Enhanced Gap Crossing capability.

2017-03-29 NT News: Northern Australia

Northern Australia - spanning all of the Northern Territory and north of the Tropic of Capricorn in Queensland and Western Australia — covers 3 million square kilometres. According to Deloitte Access Economics, the north will account for nearly 42% of the Australian economy by 2040, up from 35% in 2011.
The north’s gross regional product will increase by an average of 3% every year from 2020. One of those projects contributing will be the $50 billion Inpex project, which will be exporting gas to Japan through Darwin for the next 40 years once it starts to flow… Total capital expenditure across northern jurisdictions - WA, NT and Qld - has risen to around twice the level of investment across the rest of Australia over the last 3 years. This has little to do with the commitment of government but more the size of the opportunities are too enticing to ignore. North Australia accounts for 21.1% of Australia’s exports.

2017-04.01 NT News: Northern Australia Infrastructure Fund

Federal Resources and Northern Australia Minister Matthew Canavan… said they had received over 100 different inquiries, with 50 of them currently active. “There are about 5 projects that are close to financial close at the moment, about 14% of projects from the Northern Territory.”

2017-04-01 NT News: Strengthening NT’s bond with India

Her Excellency Harinder Sidhu the Australian High Commissioner to India visited NT Parliament House… “There has always been a relationship between India and the Northern Territory but there’s an opportunity now to build the relationship and investment. I met with CDU who already have a large number of Indian students and we had a conversation about how to deepen that relationship.” More than 3,000 people have come from India and now call the NT home.

2017-03-29 NT News: China flights a priority to develop business

Rizhao Bureau of Commerce director Li Yidong was part of the delegation that included the Mayor of Rizhao, Li Taodong, that did a tour of the NT… Mr Yidong - who has been to the NT 4 times - says the air connection is a priority. “We hope to establish a direct flight to the major cities from Darwin”
He said the agreement signed between Chinese premier Li Keqiang to expand the chilled beef market access from 11 exporters to all eligible Australian exporters could benefit the NT. “In 1 year there has been great changes at the Port. The refrigerated container site and the $11 million for the infrastructure investment is very helpful for Australian products. We saw the farms. We saw the cattle and the procedures for the abattoir (AACo’s Livingstone plant). I think… business between China companies and Australia will be more.”

2017-03-24 Australian:
Australian trade and investment to benefit from Belt and Road

Australia’s far north is a natural fulcrum from which it can leverage its relationships with key trading markets in Asia to capitalise on China’s rise as a dominant global economy. China’s little-known proposal to include Australia’s northern development plan in its ambitious One Belt, One Road Initiative will facilitate this process…
Northern Australia’s proximity to Asian markets that are forecast to account for an estimated ⅔ of the global middle class by 2030 makes it a logical destination to include in One Belt, One Road. Darwin is just 3 to 5 hours’ flying time from Southeast Asia and southern China, and it operates in similar time zones to the key Asian markets. It could benefit significantly from the investment that inclusion in One Belt, One Road could bring.

2017-03-29 NT News: Territory Tourism Flying

Over the past 3 years, the NT has seen a 69% increase in visitor numbers and an 80% increase in spending. NT has had the biggest growth in overnight visitors in the past year compared to every other state and territory around Australia.
The number of domestic overnight visitors to the NT increased by 18% to 1.5 million in the past year... Tourism employs around 15,500 workers across the Territory… The average tourist spent $1,400 for their visit to the NT, compared to an average $677 for everywhere else.

2017-03-29 Economic Brief: Engineering Construction Activity Dec Qtr 2016

In the year to December 2016, the value of engineering construction work commenced in the Territory continued to strengthen from last quarter and recorded a 26.8% increase to $989 million. Public sector work commenced increased by 66.3%, to $406. The increase largely reflects works commenced on telecommunications, which more than doubled in 2016 to $174 million, as well as increases in works commenced on roads, highways and subdivisions.
Private sector work commenced also increased, up 8.8% to $583 million.

 

Disclaimer
The above information has been compiled by Gwelo (the Agent) from third party providers. The Agent has not verified whether the above information is accurate and does not have any belief one way or the other as to its accuracy. The Agent does no more than pass on the information. The Agent does not accept any responsibility to any person for its accuracy. All interested parties should make and rely upon their own enquiries in order to determine whether or not the information is, in fact, accurate.

12 O’Sullivan Circuit, East Arm NT 0822 +61 08 8943 7300 enquiries@ gwelodevelopments.com.au

Gwelo Developments has built a strong reputation in Darwin since 1975 and the company is well known and respected. Its developments have stood the test of time and been highly innovative and the Gwelo team is a strong team of long established professionals. Skills encompass a full range of construction and project management, commercial developments and residential design providing outstanding home owner, commercial, retail and investor options.

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