The Northern Territory Government has announced it will release enough gas to keep the Gove alumina refinery open for the next 10 years.

Territory Chief Minister, Terry Mills, said the decision is subject to commitment from Rio Tinto assuring the ongoing operation of the refinery, and from Eni in confirming their guarantee to supply gas to Power and Water Corporation (PWC) until 2026.

Mr Mills said the Government would then direct PWC to release the agreed amount of gas to Rio Tinto.

“Following recent meetings with international energy companies and Federal colleagues, I am now confident I have reduced the risks associated with the supply of gas to the Gove refinery,” Mr Mills said.

“The release of the Northern Territory’s gas supply to the Gove refinery has been met by support from the Commonwealth Government and the Federal Coalition, as well as a realisation that there needs to be a greater focus on domestic energy supply across Australia.

“The Commonwealth Government has showed its commitment to the Northern Territory Government’s decision by announcing last week they would underwrite the financing of a gas pipeline to Gove.

Federal Minister for Resources and Energy, Martin Ferguson, said that the decision paves the way for the Commonwealth to give detailed consideration to facilitating construction of the pipeline that would transport the gas to Gove.

“Today’s decision will allow the Federal Government to continue giving proper consideration to proposals that, if agreed to, would enable the construction of the required infrastructure that would assist in getting the allocated gas to the Gove peninsula,”