Major plans to develop a new gasfield in waters north of Darwin have been dealt a massive blow according to environmental groups opposing the development.

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It follows a lawsuit launched by traditional owners... worried about the impact the plans could have on marine ecosystems. It's one of the nation's biggest oil and gas projects in almost a decade. A plan to extract gas from beneath waters north of the Tiwi Islands... pipe it back to a processing plant in Darwin... and export it overseas.