The Northern Territory Environment Protection Authority (NTEPA) has recommended substantial changes to the environmental licenses of Darwin's two main gas processing companies, Santos and Inpex. This move follows a review initiated by revelations that Inpex drastically under-reported toxic emissions, including the carcinogen benzene, from its Ichthys LNG plant. Initially, Inpex reported just four tonnes of benzene, but later revised this figure to over 500 tonnes, an increase of more than 13,000%. The review found "systematic underestimation" of emissions dating back to the plant's production start in 2018.

The NTEPA's recommendations include implementing stricter pollution limits, placing caps on hot venting (releasing waste gas directly into the atmosphere), and requiring continuous monitoring of emissions. Facilities will also need to maintain a "high level" of pollution control equipment and undergo regular audits. The NTEPA specified that anti-pollution systems, such as acid gas incinerators, should be operational 99.5% of the time. While existing licenses were deemed among the country's strictest, the close proximity of the facilities to Darwin city (about 6 kilometers away) and the potential for expansion necessitated a more robust regulatory framework.

Public health concerns were a key driver for the review. Despite the substantial under-reporting, the NT EPA stated that independent health risk assessments conducted by the chief health officer indicated the risk to human health remained "very low." However, environmental groups, such as the Environment Centre NT, criticized the recommendations for not adequately addressing issues like flaring limits or allowing acid gas incinerators to be non-operational. Inpex Senior Vice-President Bill Townsend confirmed the company is evaluating the implications of these potential new requirements for its operations.