Fracking is set to resume in the Northern Territory, following the Government's decision to lift a moratorium but enforce strict new laws and regulations on the industry.

Key points: The NT Government has lifted a moratorium on hydraulic fracturing

The NT Government has lifted a moratorium on hydraulic fracturing It will adopt 135 recommendations of a scientific inquiry, designed to bring risks down to acceptable levels

It will adopt 135 recommendations of a scientific inquiry, designed to bring risks down to acceptable levels A number of "no-go" zones, where fracking is not allowed will be established

Chief Minister Michael Gunner said all 135 recommendations of a recent scientific inquiry would be implemented in full, as he announced the decision on Tuesday morning.

He had imposed the moratorium before he was elected, saying the expansion of the resources industry depended "on the social approval of the people of the Northern Territory".

A scientific inquiry led by Justice Rachel Pepper then spent 15 months investigating the issue, and found the risks of fracking could be reduced to acceptable levels if 135 recommendations were implemented in full.

Cabinet met yesterday ahead of the announcement this morning.

Fracking is likely to resume in the Beetaloo Basin, an area rich in shale gas and bordered by Mataranka to the north and Elliott to the south. ( ABC News: Jane Bardon )

New laws for fracking industry

These new regulations on the industry will include having environmental management plans assessed by the NT Environmental Protection Authority and signed off by the environment minister.

There will be new requirements for pre-exploration, including codes of practice for well integrity, wastewater management frameworks and water licensing.

New requirements will also be introduced for pre-production, including developing new monitoring strategies, and further discussions with industry and pastoralists on land access requirements and compensation.

All environmental management plans will be released for public comment.

Broader judicial and merit review capabilities will be introduced, including third party appeals by stakeholders such as environmental and community groups, proponents and Aboriginal land councils.

There will also be new powers to sanction industry non-compliance and increased criminal penalties for environmental harm.

Under the rules, fracking would be able to take place in 51 per cent of the Territory, with a number of "no-go" zones in place, including Indigenous protected areas, areas of environmental, cultural or agricultural significance and residential areas where there is some level of population density.

NT Labor Chief Minister Michael Gunner said fracking exploration could begin mid-2019. ( ABC News: Al Dowler )

Exploration likely to begin next year

Mr Gunner said he expected fracking exploration to begin in the middle of next year.

He said it would be at least six months for data to be collected on methane levels across the Territory.

"There's a number of recommendations, over 30 that require to be put in place before the exploration process can recommence, so I think doing all that work should see an exploration process commence some time around dry season next year," he said.

The NT Government has also reached out to the Federal Government to partner with it in offsetting any additional emissions caused by a fracking industry.

But Mr Gunner said the decision to lift its moratorium on fracking was not influenced by Federal Government pressure to allow the process.

Members of the Federal Government, including Prime Minister Malcolm Turnbull, had previously called on Mr Gunner to lift the ban to help boost national gas supply.

Mr Gunner said his government's decision was based solely on the fracking inquiry's final report.

"Those external issues like Australian government commentary was secondary, not even secondary, it was not part of my decision making, for me it was about this report," he said.

"And the fact that this report said if you accept all 135 recommendations you can have a safe, unconventional oil and gas industry."

In a statement, Origin, who joint-own the Amungee NW-1H well near Daly Waters, said the company planned to resume work "as soon as practical".

Origin Energy's capped Amungee NW-1 well near Daly Waters in the Northern Territory. ( ABC Rural: Daniel Fitzgerald )

Industry excited, but environmentalists 'betrayed'

The Federal Minister for Resources and Northern Australia, Matt Canavan, said he was glad the NT Government listened to the inquiry's recommendations.

"It has been the common theme from all experts across the country for nearly a decade so this is good news for the territory," he said.

"It's belated news for the territory, it's belated news for the country, we now just have to get on with the job because the gas here is very exciting."

Northern Territory Country Liberal senator Nigel Scullion said the announcement was overdue.

Senator Scullion said he "certainly" put pressure on Mr Gunner to lift the moratorium.

"I'm delighted to eventually see the Northern Territory Government act. It was just sort of seen there was no action at all," he said.

Federal Minister for Resources Matt Canavan and NT Country Liberal senator Nigel Scullion supported the lifting of the moratorium. ( ABC News: Angie Davies )

"I was saying Michael what about the kids, what about their jobs?"

It was a sentiment echoed by the Australian Petroleum Production and Exploration Association, which said new regulatory oversight would give the community confidence the industry would operate safely.

However, the news was not welcomed by all.

Lock the Gate NT coordinator Pauline Cass said the decision "betrayed Territorians".

"The Government hasn't kept the faith with Territorians. Territorians voted for a moratorium," she said.

"It's a total betrayal and let down for all of us that are trying to protect our water."