The Northern Territory Government has provided Tamboran exclusivity over 170-hectares (420-acres) on the Middle Arm Sustainable Development Precinct for a proposed LNG development, Northern Territory LNG (NTLNG), expected to be supported by CO2 gas from the Beetaloo Basin.

The Middle Arm acreage has been allocated on a “Do Not Deal” basis for 12 months, allowing Tamboran to progress a Concept Select phase for the proposed development.

The development is expected to have an initial capacity of 6.6 million tonnes of LNG per annum (MTPA), with the potential for expansion, subject to completion of the Concept Select study, successful Beetaloo appraisal drilling and flow testing, and Government approvals.

NTLNG represents the first fully integrated onshore LNG development in Northern Australia where upstream, midstream and downstream production and processing are based in the Northern Territory.

Tamboran Resources Limited Managing Director and Chief Executive Officer Joel Riddle said securing a 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.

“If deemed commercial, Tamboran aims to sanction the proposed LNG development by 2026, with first volumes anticipated to commence by 2030.

“This is an exciting opportunity for Territorians, which not only has the potential to deliver significant jobs in Darwin and the Beetaloo Basin over the long term, but also deliver hundreds of millions of dollars in royalties to the Northern Territory Government and Native Title Holders, as well as benefits to the regional community and across the NT.

The Middle Arm Sustainable Development Precinct is located on a peninsula south of Darwin that already hosts the Ichthys LNG and Darwin LNG developments.

The Northern Territory is working with industry and the Australian Government to accelerate the development of Middle Arm into a globally competitive, sustainable development precinct for low emissions hydrocarbon and hydrogen production, carbon capture and storage and minerals processing. This Precinct is expected to require a large, secure, low reservoir CO2 natural gas supply.

The 2022/23 Federal Budget included $1.5 billion equity to support the construction of common user marine infrastructure within the Middle Arm Sustainable Development Precinct.