AUSTRALIA: Tamboran Resources Corporation (TBN) has announced the signing of a binding Gas Sales Agreement (GSA) with the Northern Territory government to supply 40 TJ per day (~19 TJ per day net to Tamboran) from the proposed Shenandoah South Pilot Project.
This agreement, with an initial term of nine years starting in H1 2026 and an option for a further six-and-a-half years, represents approximately two-thirds of the Northern Territory’s current gas requirements.
The gas will be supplied on a take-or-pay basis at a market-competitive price, escalating at 100 per cent of the Consumer Price Index (CPI).
This commitment is conditional on the Beetaloo Joint Venture (BJV) entering into a binding Gas Transportation Agreement with APA for the proposed Sturt Plateau Pipeline, a binding Gas Processing Agreement for the proposed Sturt Plateau Compression Facility, reaching a final investment decision (FID), and receiving key regulatory and stakeholder approvals.
Tamboran (B2) holds a 77.5 per cent interest in EP 98/117, with Falcon Oil and Gas Australia Ltd holding the remaining 22.5 per cent.
For the Shenandoah South-2 Drilling Spacing Units (DSUs) covering 51,200 acres, Tamboran holds a 95 per cent interest, with Falcon holding the remaining 5 per cent.
Tamboran (B2) is a 50/50 joint venture between Tamboran and Daly Waters Energy, LP, which is managed by Formentera Partners, LP, a private equity firm led by managing partner Bryan Sheffield.
Tamboran (B2) is the operator of EP 98/117 and the Shenandoah South-2 Drilling Spacing Units, acting on behalf of the joint venture.
These interests are subject to the completion of the SS-2H and SS-3H wells on the Shenandoah South pad 2.
Tamboran Managing Director and CEO Joel Riddle stated: “We are proud to deliver on our commitment to provide the Northern Territory government with a long-term supply of gas from the Beetaloo Basin.
“This is a transformational development for Tamboran and our partners, after 10 years of hard work and more than A$500 million invested in Beetaloo exploration and appraisal activities.”
The proposed Shenandoah South Pilot Project is expected to provide initial royalties to both the Northern Territory government and Traditional Owners within the region.
Riddle emphasised the importance of gas supply for electricity generation in the Northern Territory, which predominantly relies on gas-fired power, resulting in lower emissions intensity compared to coal-reliant states like NSW, Victoria, and Queensland.
