Selects APA as Preferred Beetaloo Pipeline Partner
Sydney, June 23, 2023 AEST (ABN Newswire) - Tamboran Resources Limited (
ASX:TBN) (TBNNY:OTCMKTS) has selected APA Group (ASX:APA) as the preferred transmission pipeline partner for Tamboran's Beetaloo Basin development following a six-month competitive process.
APA and Tamboran have signed a term sheet, which is planned to be converted into a longerform agreement in the coming months, 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.
The principles of the term sheet between APA and Tamboran are that:
- APA will fully fund all activities proposed under the strategic partnership, including spending of up to $10 million on studies and approvals over the next twelve-months.
- APA will commence a project to install a gas pipeline connecting Tamboran's proposed pilot development at Shenandoah South (SS) to the Amadeus Gas Pipeline (AGP), targeting completion by 2025.
- When operational, the proposed SS to AGP pipeline would enable Tamboran's gas to stabilise the Northern Territory gas grid and commence sales under Tamboran's existing 36.5 PJ per annum (gross) Gas Sales Agreement (GSA) with Origin Energy (ASX:ORG).
- 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.
The proposed projects and long-form agreements to be based on the term sheet are subject to further negotiations and approvals between APA and Tamboran.
Tamboran Resources Limited Managing Director and CEO, Joel Riddle, said:
"We are excited to be working closely with APA Group, the largest and most respected pipeline operator in Australia, to commercialise our 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 SS 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.
"Tamboran remains committed to supporting the Australian domestic gas market through the energy transition with low reservoir CO2 gas from the Beetaloo. I believe gas is expected to play a key role in meeting Australia's emissions reduction targets while supplying affordable cost of electricity and food prices to Australian families.
"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."
*To view tables and figures, please visit:
https://abnnewswire.net/lnk/Z3PB848U
About Tamboran Resources Corporation
Tamboran Resources Corporation (ASX:TBN) is a natural gas company that intends to play a constructive role in the global energy transition towards a lower carbon future by developing low CO2 unconventional natural gas resources in the Beetaloo Sub-basin within the Greater McArthur Basin in the Northern Territory of Australia. Tamboran's key assets are a 25% working interest in EP 161 and a 100% working interest in EP 136, EP 143 and EP(A) 197 which are located in the Beetaloo Sub-basin.
| ||
|
