Tamboran plans Darwin LNG terminal to speed up export from Beetaloo Basin
Tamboran Resources plans to develop a new LNG export terminal in Darwin with first production in 2030.
Tamboran Resources is targeting the development of a new LNG export terminal in Darwin with first production in 2030, accelerating its plans to sell gas from the Beetaloo Basin.
The Northern Territory government granted Tamboran a licence to investigate an LNG export terminal as part of a 170ha area within the proposed Middle Arm industrial development.
The Beetaloo Basin is widely considered to have enough gas to service and expand existing LNG export markets and secure the domestic gas supply, but the region is culturally and environmentally sensitive.
The NT government in May allowed fracking in the Beetaloo. The country’s oil and gas industry said the decision would aid Australia’s $2 trillion economy and improve energy security but has ignited a wave of opposition from environmentalists and some Indigenous groups.
Tamboran is expected to begin drilling in the Beetaloo within weeks under its exploration licence, and hopes to expand after securing licences and agreements with local landowners. It has a supply deal with Origin and is targeting first LNG production in 2030.
“Securing a strategic site at Middle Arm is a significant milestone for Tamboran and the Beetaloo Basin. The enormous scale of the Basin means that the low reservoir CO2 natural gas has potential to deliver large and scalable volumes over the long term not only for
Australia’s east coast gas market, but also to international markets,” said Tamboran Resources chief executive Joel Riddle. “Providing affordable natural gas to Australia and our regional partners is anticipated to enable a reduced dependency on coal-fired power generation, while delivering a significant reduction in global greenhouse gas emissions.”
Tamboran expects to begin producing about 20TJ of gas a day in 2024. Tamboran said it would then expand production to about 100TJ a day before third-stage expansion sees the company export LNG.
Producing gas from the Beetaloo could be extremely lucrative for the NT through royalties, but drilling is a lightning rod for opponents to any new gas developments in Australia. Opposition to gas among voters has risen steadily, but the fossil fuel industry insists gas can meet environmental and energy security goals.
Renewable energy proponents insist Australia should focus on developing renewable energy generation and storage projects, which would negate the need for gas projects.
Grid-scale renewable energy projects and transmission lines have been beset by delays and cost blowouts. Smaller projects and rooftop solar generation continue to grow at pace, however.
Tamboran emerged from relative obscurity as an ambitious gas junior in recent months after its listing on the ASX in 2021. It owns unconventional gas resources in the NT.
Tamboran shares fell 2.4 per cent to 20c.
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