Tamboran Resources Corporation and Daly Waters Energy, LP (DWE) have signed binding agreements with APA Group (ASX: APA) for the construction and operation of the Sturt Plateau Pipeline (SPP), a crucial infrastructure project for the proposed Shenandoah South (SS) Pilot Project in the Beetaloo Basin.
The 37-kilometre pipeline will connect the proposed Sturt Plateau Compression Facility (SPCF) to APA’s existing Amadeus Gas Pipeline (AGP), facilitating the delivery of gas under the Gas Sales Agreement (GSA) with the Northern Territory government.
Tamboran and DWE have secured all foundation capacity on the SPP from the start of operations until at least 2041, aligning with the GSA term.
They also retain competitive access and pricing rights for capacity following the initial term.
APA Group has made significant progress on the SPP project, with detailed design and approval applications well underway.
The company plans to place orders for long-lead packages before the end of 2024.
Construction of the 12-inch diameter pipeline is slated for the second half of 2025, with the SPP expected to be ready to accept gas from the SS Pilot Project in the first half of 2026.
Joel Riddle, Managing Director and CEO of Tamboran Resources Corporation, emphasised the importance of this agreement: “We continue to secure key agreements necessary to commence gas production from our proposed Shenandoah South Pilot Project in the first half of 2026.
“Gas volumes from the Pilot Project will be supplied to the Northern Territory government through a binding GSA for up to 15.5 years, facilitated by the APA-operated SPP.”
Riddle also highlighted the critical role of natural gas in the Northern Territory’s electricity generation and Tamboran’s commitment to ensuring reliable energy supply while adhering to high environmental standards and supporting Native Title Holders.
The partnership with APA Group, Australia’s largest gas pipeline operator, is seen as a strategic move.
APA’s experience in the Northern Territory, including its ownership of the AGP, which connects Alice Springs to Darwin via the Beetaloo Basin, is expected to be instrumental in supporting the region’s energy infrastructure.
This development marks a significant step forward in the commercialisation of the Beetaloo Basin’s gas resources and underscores the growing importance of domestic gas supply in Australia’s energy landscape.