Tamboran inks gas deal with BP and Shell subsidiaries

The Beetaloo Basin’s largest proponent has laid out its plans for developing the precinct and inked two incredible deals. Read what they are.

Pipeline infrastructure worth potentially billions of dollars is expected to flow from the Beetaloo project.

In a big day for the NT’s emerging gas precinct, key Beetaloo-player Tamboran Resources and pipeline builder APA Group announced plans to build three pipelines over the next five years.

Although the cost of the project remains fluid and depends on external factors, an industry insider said the total cost of the build could be as much as $2bn.

Tamboran told the Australian Stock Exchange on Friday morning it will jointly develop with APA three gas pipelines to connect Tamboran’s Beetaloo assets to Australia’s domestic east coast gas market and Tamboran’s LNG development proposed for Middle Arm.

Former Origin Energy's Kyalla well gas site near Daly Waters is now owned by Tamboran Resources.

The agreement means APA will fully fund all activities proposed under the strategic partnership, including spending of up to $10m on studies and approvals over the next 12 months.

APA also wants to install a gas pipeline connecting Tamboran’s proposed Shenandoah South pilot development to the Territory’s north-south Amadeus Gas Pipeline, targeting completion by 2025.

When operating, the pipeline would enable Tamboran’s gas to stabilise the NT gas grid and commence sales under Tamboran’s gas sales agreement with Origin Energy.

By 2028, APA and Tamboran want to connect the Beetaloo to its existing east coast gas network.

While neither deal is locked-in, the announcements indicate Tamboran expects to be producing gas at Beetaloo within two years.

Joel Riddle is the Managing Director and CEO of Tamboran Resources.

Tamboran chief executive Joel Riddle said APA Group was Australia’s largest and best pipeline operator.

“APA will commence the initial stages of work to connect the Shenandoah South with the Amadeus Gas Pipeline, and is planned to be available to accept gas by the end of 2025,” Mr Riddle said.

“This will support our efforts to deliver into the existing 10-year gas sales agreement with Origin Energy.”

\Mining Minister Nicole Manison with Joel Riddle and Helmerich & Payne and rig representative John Bell

In a separate announcement Friday, Tamboran revealed it had inked two non-binding MOUs for the sale of 2.2m tonnes of liquefied natural gas a year to subsidiaries of energy giants Shell and BP.

The LNG will come from Tamboran’s Beetaloo assets subject to completion of successful Beetaloo appraisal drilling and government approvals.

Mining Minister Nicole Manison said the dual announcements showed the NT is emerging as a precinct for renewable and low-emissions energy, investment and new industries.

“The fact Tamboran has signed memorandum of understandings with subsidiaries of global energy giants BP and Shell means more jobs and more opportunities for all Territorians,” she said.

“Not just in the energy industry, but through the enormous amount of economic activity that will be spurned on by royalties, including new schools, new hospitals and safer roads.

“The energy transition will provide reliable, secure and affordable energy for Territorians and Australia, while helping our neighbours to decarbonise.”