Tamboran Signs LOI's With Four Domestic Energy Buyers
Sydney, Aug 2, 2023 AEST (ABN Newswire) - Tamboran Resources Limited (
ASX:TBN) (TBNNY:OTCMKTS) has signed four separate non-binding Letters of Intent (LOIs) with Origin, AGL, Energy Australia and Shell Energy Australia (together the "Parties") to potentially purchase in aggregate 510 - 750 TJ per day (185 - 270 PJ per annum) of gas from Tamboran's low-reservoir CO2 Beetaloo Basin gas assets for a period of up to 10 - 15 years.
Tamboran will separately work with the Parties toward executing separate binding fully termed Gas Sales Agreements (GSAs), including purchase price, transport arrangements and other key commercial terms.
First gas is targeted to commence in 2028, subject to commercial flow rates from Tamboran's Beetaloo Basin assets.
The binding GSAs support the progress of APA Group's (ASX:APA) proposed pipeline between the Beetaloo Basin and the East Coast gas transmission network.
APA has commenced preliminary land access approvals and pre-engineering studies with the objective of potentially connecting the Beetaloo Basin to the existing East Coast Gas Grid.
The LOIs demonstrate the ongoing importance of natural gas in Australia's energy mix.
Tamboran Resources Limited Managing Director and CEO, Joel Riddle, said:
"The initial interest from key East Coast gas buyers for the long-term purchase of Tamboran's low-reservoir CO2 Beetaloo Basin gas volumes demonstrates gas' viability and role in the energy transition in Australia.
"We are excited to be working with these important gas and energy retailers who are expected to provide key offtake agreements which we expect will support the progress of APA's proposed Beetaloo to East Coast Gas Pipeline. Tamboran plans to work closely with the Northern Territory, Australian Federal Government, APA Group and potential gas purchasers to progress development of this important piece of future Australian infrastructure.
"With AEMO and the ACCC forecasting a potential domestic gas shortfall of ~500 TJ per day by 2030, volumes from the Beetaloo Basin could be a key solution to meeting this forecast demand.
"Tamboran is committed to developing a gas project with Net Zero Scope 1 and 2 equity emissions from first commercial production to provide energy security to Australia's Northern Territory and East Coast gas markets."
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.
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