Federal Climate Change Minister Chris Bowen has indicated jurisdictions outside the Northern Territory will be required to help offset carbon emissions from fracked gas.
It comes weeks after the NT government approved a full-scale fracking industry in the Beetaloo Basin, an enormous shale gas field about 500 kilometres south-east of Darwin.
This is despite failing to implement in full all 135 recommendations of the Pepper Inquiry as promised when it lifted a moratorium on fracking in 2018.
That includes Recommendation 9.8 which requires the NT and federal governments seek to ensure there is no net increase to Australia's carbon emissions from fracked gas in the NT.
Speaking to ABC Radio Darwin on Friday, Mr Bowen said "there was some work to go yet" with meeting Recommendation 9.8.
"We have offsets available, but how you would manage that across jurisdictions is an important and complex manner," he said.
Under the federal safeguard mechanism all scope one emissions from the Beetaloo Basin must be net zero from the beginning.
However, there is currently no clear plan to offset scope two and three emissions which will make up the vast majority of carbon emissions produced in Australia from fracking the basin.
"Scope two and three is a bigger task which energy ministers and climate ministers will deal with over the course of the next few months," Mr Bowen told the program.
He said the Energy and Climate Ministers Council would meet to discuss these "cross-border issues" later in the year.
"It depends where the gas is sent, where the scope two and three emissions occur," Mr Bowen said.
"Again, that will be more relevant for some jurisdictions than others."
'100 per cent committed' to 9.8
This week federal Lingiari MP Marion Scrymgour joined a chorus of critics disputing the NT government's claim it met all Pepper Inquiry recommendations before approving fracking.
Those critics include the NT's own independent fracking regulator Dr David Ritchie, federal Greens leader Adam Bandt, and independent senator David Pocock.
Mr Bowen refused to be drawn on whether he supported the NT government's claim that it had met all the recommendations.
"They have acquitted their responsibilities, we are acquitting ours," he said.
He said the government was "100 per cent committed" to meeting Recommendation 9.8.
Mr Bowen also said the government was yet to reform the federal water trigger to apply to onshore shale gas development, as per Recommendation 7.3.
Beetaloo gas not critical for east coast energy supply
For months, NT Chief Minister Natasha Fyles has said other Australian states and territories were relying on Beetaloo gas for their energy supply.
On Tuesday, she repeated the claim.
"It's easy to walk around and say 'no gas, no fracking'," Ms Fyles told ABC Radio Darwin.
"But actually, when you have the responsibility to deliver energy for the Northern Territory and energy for the nation, it can go to the Territory's energy source, it can go to the east coast's energy source."
However, Mr Bowen moved to downplay the role of Beetaloo gas in the context of ensuring Australia's energy security.
"Is all the pressure on Beetaloo?" he said.
"No. There are other projects that have been well under development, and probably further down the development road than the Beetaloo."
Mr Bowen said national energy needs were "not the Northern Territory's responsibility alone".
"Of course, they are entitled to put plans and processes forward," he said.
According to federal government data, about 75 per cent of natural gas produced in Australia was exported overseas in 2020-21.
