APA, Tamboran sign $66m pipeline deal to deliver Beetaloo gas to Darwin

A new 37km gas pipeline will transform energy delivery in the Top End. Read what was signed.

A new 37km pipeline will be built linking Tamboran Resources’ Beetaloo Basin gas assets with the NT’s north-south Amadeus pipeline.

Tamboran and APA Group announced the long-term gas transportation agreement to build the Sturt Plateau Pipeline connecting the Shenandoah South Pilot Project to Amadeus by early 2026.

The 12-inch diameter pipeline will connect Tamboran’s proposed Sturt Plateau Compression Facility with the APA-owned Amadeus pipeline.

With an estimated construction cost of $66.5m, the project is subject to reaching certain targets such as obtaining third-party approvals including a pipeline licence.

Under the Gas Transport Agreement, APA will begin receiving revenue upon first receive of Shenandoah South pilot project for transportation to the Amadeus Gas Pipeline, which APA said should be flowing first half of 2026.

A new gas pipeline agreement will link Tamboran with the Top End.

The GTA will continue until at least 2041

APA said the SPP would be the first of a number of pipeline projects to transport gas out of the Beetaloo, although the agreement did not commit the builder to developing further Beetaloo assets.

In a statement released after Tuesday’s formal stock exchange announcement, APA said the SPP would be funded from APA’s existing balance sheet.

Chief Executive Officer at APA Group Adam Watson.

APA chief executive and managing director Adam Watson, said the project highlighted ongoing growth opportunities across APA’s gas transmission network and its critical role supporting energy security and transition.

“The development of the Beetaloo Basin is in the national interest,” Mr Watson said.

“We know there are significant risks of domestic gas shortfalls in the years ahead and that new sources of supply will be required from 2028 to meet supply gaps.

Tamboran Resources Chief Executive Joel Riddle: Pema Tamang Pakhrin

“Approximately 88 per cent of electricity generated in the Northern Territory comes from gas fired power generation and around 60 per cent of the Northern Territory’s gas supply from 2026 is forecast to come from Tamboran’s first pilot gas development.

“This new infrastructure is critical to ensuring gas from the Beetaloo will be available to power the Northern Territory as existing gas supply sources deplete.

Australian Energy Producers NT Director David Slama at Tamboran’s Beetaloo prospect.

Tamboran managing director and chief executive Joel Riddle said the move was another step to fulfilling the gas sales agreement signed with the NT Government to deliver 40 terajoules of gas per day from 2026.

“We continue to secure key agreements necessary to commence gas production from our proposed Shenandoah South Pilot Project in the first half of 2026,” Mr Riddle said.

“Gas volumes from the pilot project will be supplied to the Northern Territory Government through a binding gas sales agreement for up to fifteen-and-a-half years, facilitated by the APA-operated Sturt Plateau Pipeline.

Australian Energy Producers NT Director David Slama marked the project milestone.

“The Beetaloo Basin is crucial to the Territory’s long-term energy security and will deliver enormous economic and employment opportunities,” he said.

“The agreement is an important milestone in unlocking one of Australia’s most promising new prospects for gas supply.

“Investment confidence is building in the Territory as it gets on with securing reliable and affordable energy.”

Originally published as APA, Tamboran sign $66m pipeline deal to deliver Beetaloo gas to Darwin