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How the Northern Territory has avoided the power crisis unfolding in the eastern states — for now

The NT government-owned electricity distributor is not forecasting the kind of crisis unfolding on the east coast. (ABC News: Hamish Harty)

As the eastern states grapple with the "perfect storm" behind a rapidly worsening energy crisis, the skies over the Northern Territory's power system are pretty clear.

And it's not just because no one's using a heater during another balmy Darwin dry season.

The cost of power hasn't changed and there's no panic about sudden blackouts or emergency load shedding.

Here's what makes the NT's situation different — for now.

The NT has a long-term gas agreement it's only halfway through

A few factors set the Northern Territory apart from the situation in the eastern states.

Like Western Australia, the NT runs its own separate power grid — it's not connected to the National Energy Market linking all other states and the ACT.

The Australian electricity sector has been dealing with soaring costs. (ABC News: Hamish Harty)

There are no ageing or off-line coal-fired power stations complicating things.

And although it's chilly in Alice Springs, winter in the capital is lovely and mild, meaning there has been no spike in power use like that seen during the cold snap down south.

But the big difference comes down to gas supply and pricing.

Just under 90 per cent of the NT's electricity comes from gas, with almost all of it drawn from the Blacktip gas field sitting off the north-west Top End coast.

Under a deal inked by a previous Labor government, the gas will keep coming from Blacktip for another 12 years.

The take-or-pay agreement worth $5.5 billion secured 25 years of gas from the field operated by Italian energy giant ENI. The deal expires in 2034.

That's why government-owned utility Power and Water Corporation is not forecasting the kind of crisis unfolding on the east coast, according to a statement.

Why are power shortages spreading?

Darwin-based energy consultant Alan Langworthy said the Blacktip deal was criticised in the past because it bought the NT more gas than it can use.

However, he said it's served to help protect Territorians from what's happening interstate.

"Basically, the Territory has a guaranteed supply at the moment — a guaranteed supply of gas at a particular price — so we're not subject to the immediate problems of the east coast," he said.

What happens when the current gas agreement runs out?

While supply is secure for now and prices protected from the international market, Mr Langworthy said the NT has decisions to make about future gas developments.

There are calls for the creation of a reservation policy for the Northern Territory's growing LNG export industry. (Supplied: Inpex)

There is no reservation policy in place covering the NT's growing LNG export industry and former NT Chief Minister Michael Gunner previously dismissed the idea.

His successor Natasha Fyles said on Wednesday it was too early for conversations about whether the mechanism should apply to companies seeking to develop the gas-rich Beetaloo Basin.

"It's once that exploration has been undertaken, and we understand the assets that we have, it would be appropriate to [have conversations] between the industry and the Commonwealth government and the Northern Territory government at that point," she said.

Mr Langworthy, who previously advised the Labor government on reaching a renewable energy target of 50 per cent by 2030, said the time for those conversations was now.

"I think they'd be crazy to go ahead with the Beetaloo Basin — any other gas development in the Territory — without actually having some reservation for domestic use," he said.

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