Natural gas company Tamboran Resources Limited has signed two separate non-binding Letters of Intent (LOIs) for an additional 90 to 125 terajoules (TJ) per day (33 to 45 petajoules (PJ) per annum) with Alinta Energy and ENGIE.

This increases the total potential volume of Tamboran’s low-reservoir carbon dioxide Beetaloo Basin gas supply to 600 to 875 TJ per day (220 to 320 PJ per annum) for up to approximately 10 to 15 years.

The LOIs are conditional upon Alinta Energy and ENGIE agreeing to non-binding term sheets and working towards executing binding Gas Sales Agreements (GSAs) — including purchase price, transport arrangements and other key commercial terms.

Upon securing binding GSAs with both companies, Tamboran will progress APA Group’s proposed pipeline between the Beetaloo Basin and the East Coast gas transmission network.

Tamboran Resources Limited CEO and Managing Director Joel Riddle said: “We continue to experience significant interest in purchasing low-reservoir CO2 gas from our Beetaloo Basin assets delivered into the east coast over the long term. We believe this demonstrates the longevity of demand for gas on the east coast.

“The total volume under interest from the six parties we have received LOIs from to date reflects ~40 – 55 per cent of 2023 East Coast gas demand (excluding LNG) as forecast by the Australian Energy Market Operator (AEMO).

“We look forward to working closely with the buyers to support their ongoing gas needs and provide energy security to Australians in the Northern Territory and East Coast over the long term,” said Riddle.

Tamboran plans to commence its first gas transmission through the new proposed Beetaloo to East Coast pipeline in 2028.

This will be subject to commercial flow rates from Tamboran’s Beetaloo Basin assets and standard approvals.

The additional volumes further demonstrate the long-term interest in securing gas on Australia’s East Coast, where current supply is expected to fall significantly in coming years due to a lack of investment and slow approvals.

Tamboran Resources Limited is the largest acreage holder and operator with approximately 1.9 million net prospective net acres in the Beetaloo Sub-basin within the Greater McArthur Basin in the Northern Territory of Australia.

The company is focused on developing the significant low CO2 gas resource within the basin and playing a constructive role in the global energy transition towards a lower carbon future.