Tamboran Resources granted major project status for Beetaloo fracking project
The Territory government has granted Tamboran major project status, as the company meanwhile attempts to launch on the New York Stock Exchange, warning investors of ‘a high degree of risk’.
Northern Territory
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The Northern Territory government has granted Major Project status to Tamboran Resources for its Beetaloo basin fracking and gas export development.
Announced on Wednesday, Major Project status streamlines the US company’s dealings with government in relation to its Beetaloo sub-basin project and Liquified Natural Gas export terminal at the proposed Middle Arm industrial precinct.
It also signals the government’s recognition of the project as one of significance to the Northern Territory.
Chief Minister Eva Lawler said it was a key milestone for Tamboran, and “lets investors know the Territory is open for business”.
It comes as Tamboran this week launched an Initial Public Offering on the New York Stock Exchange, aiming to raise up to $263.4m (USD$175.5m) in order to make its project viable.
The IPO notes a “high degree of risk” for investors, including that “our business plan requires substantial additional capital, which we may be unable to raise”, the company has “no proved reserves”, and that “recurring losses from operations, negative cash flows and substantial cumulative net losses raise substantial doubt about our ability to continue as a going concern”.
Tamboran director Andrew Robb downplayed the risks.
“Assuming the success of the IPO – which, wait another week, I’m very confident – that shows not only the confidence in Australia, that will show the confidence in the United States,” he said.
Mr Robb was federal Trade and Investment Minister in the lead up to the Territory imposing a moratorium on fracking in 2016 – a move opposed by his coalition government at the time.
He said that in retrospect he did not believe the Territory’s gas industry would be as advanced as it is today if not for the moratorium.
“We wouldn’t be where we are, that’s for sure, we’d be further behind.
“(The NT government) had a long list of fear mongering that had been perpetrated here, and they went through the list and satisfied themselves that that was all fear mongering, it wasn’t reality.
“Overwhelmingly now, there’s a comfort about what we do, and I think that we’ll look back and see that the moratorium followed by the Pepper Inquiry, and the initiative to go and learn what’s happening in this space elsewhere in the world, has been fundamental to getting the social licence to go ahead with this.”
Shadow Mining Minister Steve Edgington said Labor’s track record on major projects was “appalling”.
“A look at the current list of projects includes the bankrupt Project Sea Dragon that the disgraced Police Minister had shares in and the only project that has been delivered was the Northcrest project started by the previous CLP government,” he said.
“Labor is divided on gas and Territorians know they cannot be trusted to deliver on the benefits of the industry – the investment, economic growth, jobs and energy security, regardless of Eva Lawler’s announcement today.”
Frack Free NT spokesman Phil Scott said the government’s support of fracking projects was “wilfully deaf” to community concerns.
“The Territory government continues to do everything it can to prop up Tamboran, which was recently revealed to be little more than a shell company with insufficient cash to complete its planned Shenandoah South fracking project,” he said.
“The only silver lining here is that the NT Labor government is so woefully inept, other projects that have been awarded major project status have failed to materialise. We sincerely hope this is the case with Tamboran’s fracking plans.”
The government in April signed a 15-year commercial in confidence deal with Tamboran to supply almost two-thirds of the Territory’s current gas needs, should its project go ahead.
Tamboran chief executive Joel Riddle said he looked forward working closely with the government to achieve the Territory’s economic plan, “including the potential for the Beetaloo Basin to support thousands of new jobs and increase economic activity by $17bn by 2040”.
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