Tamboran has selected APA Group as the preferred transmission pipeline partner for its Beetaloo Basin development. The two companies have agreed to jointly develop gas transmission pipelines to connect Tamboran’s Beetaloo Basin assets to Australia’s domestic East Coast gas market and Tamboran’s proposed Northern Territory LNG development at Middle Arm.
Tamboran Resources Limited Managing Director and CEO Joel Riddle said the company is excited to work with APA Group to commercialise its low reservoir CO2 gas in the Beetaloo Basin via access to the Northern Territory, Australia’s East Coast and international LNG markets.
“APA will commence the initial stages of work to connect the Shenandoah South location in the ‘Core‘ Beetaloo Basin to the AGP. The pipeline is planned to be available to accept gas by the end of 2025. This will support our efforts to deliver into the existing 10-year GSA with Origin Energy for up to 36.5 PJ per annum (gross volume).
“APA will undertake the initial studies and approvals for a proposed pipeline connecting the Beetaloo Basin to their existing pipeline network on Australia’s East Coast, where the gas market is expected to be in a material shortfall by the end of the decade.
“The pipeline is planned to have capacity of more than 500 mmscfd, reflecting the anticipated market shortfall forecast by the Australian Energy Market Operator (AEMO) in the southern states by 2030.”
APA will further progress initial stages of a project to connect the Beetaloo Basin to its existing East Coast gas network to enable gas to flow by 2028.
Mr Riddle said longer-term, APA will also work closely with Tamboran to potentially build a pipeline from the Beetaloo Basin to Middle Arm in Darwin, supplying Tamboran’s proposed NTLNG development on the site under exclusivity from the NT Government, which was announced earlier this month.
“The site has potential to house a 6.6 MTPA LNG project, with potential to supply gas to the Asia Pacific region to support a transition from coal fired power to gas and renewables. With global emissions continuing to rise despite a significant investment in renewables over the last decade, I honestly believe that the most effective way to reduce emissions is through the displacement of coal, which is only capable through the supply of low cost, affordable gas.”
The proposed projects and agreements are subject to further negotiations and approvals between APA and Tamboran.
MoUs with bp and Shell for LNG from proposed NTLNG development
Tamboran has also entered into two non-binding Memorandum of Understandings (MOU) with BP Singapore Pte. Limited (bp), a subsidiary of BP plc., and Shell Eastern Trading (Pte) Ltd. (Shell), a subsidiary of Shell plc. regarding the potential purchase of liquefied natural gas (LNG) from Tamboran’s proposed NTLNG project at Middle Arm.
The two MOUs include volumes for bp and Shell to each purchase up to 2.2 million tonnes of LNG per annum over a 20-year period.
Gas volumes have the potential to be supplied from Tamboran’s Beetaloo Basin gas assets, subject to completion of the Concept Select studies, successful Beetaloo appraisal drilling and government approvals.
Tamboran will progress discussions with both bp and Shell prior to the completion of the FEED in 2024 and aims for formal execution of the LNG Sale and Purchase Agreements (SPA) in 2025.
Mr Riddle said securing the MoUs is a significant step in progressing the proposed NTLNG development.
“bp and Shell are two of the world’s largest LNG portfolio trading and energy companies and provide important and credible counterparties for Tamboran to progress financing discussions to support the sanctioning of the NTLNG project, capable of producing up to 6.6 MTPA.”
