US-based Formentera Partners and global LNG giant INPEX have announced the start of a joint venture, which aims to fast-track the development of the Northern Territory’s Beetaloo Basin’s vast shale gas reserves.
The partnership aims to leverage advanced US shale technology and expertise, refined in prolific plays like the Marcellus Shale, to unlock a resource that has long been considered technically challenging.
Under the agreement, INPEX will acquire an initial 68,000 net acres within Formentera’s 1.9-million-acre position. The deal involves a staged earn-in of up to US$208 million (AU$302.9 million), with options for INPEX to expand its footprint further for an additional consideration of up to US$411 million (AU$598.4 million).
This capital will be used toward a rigorous drilling program operated by Daly Waters Energy (DWE), a subsidiary of Formentera.
The Beetaloo Basin has historically seen several operators exit due to regulatory and technical hurdles.
However, Formentera Managing Partner Bryan Sheffield believes the turning point has arrived.
“We entered and applied our continuously improving expertise, advantages, and key relationships to solve what others couldn’t.
“This is a turning point for the basin, for Australia, and for the future of international shale development.”
For the Northern Territory, the advantages to the partnership are attractive.
The joint venture, which includes partner Tamboran Resources, is anchored by a 40 million cubic feet per day supply agreement to meet local demand.
Beyond domestic use, the gas is expected to provide the feedstock for a proposed third LNG train at the Ichthys LNG facility in Darwin.
Northern Territory Chief Minister Lia Finocchiaro, welcomed the announcement, describing the delivery of Beetaloo gas as a national imperative for energy security.
“The Northern Territory is uniquely positioned to power Australia’s future. Unlocking and delivering Beetaloo natural gas to domestic and international markets is not just an opportunity, it is a national imperative.”
With appraisal work largely complete, the venture now shifts its focus to critical infrastructure and processing capacity.
As this infrastructure develops, the Beetaloo’s scale and location also position it as potential long-term, reliable supply source for higher-demand population and industrial centres along Australia’s East Coast.
