Tamboran Signs Binding GSA with Northern Territory Government
Sydney, April 23, 2024 AEST (ABN Newswire) - Tamboran Resources Corporation (
ASX:TBN) (TBNNY:OTCMKTS) signs binding GSA with the Northern Territory Government to supply 40 TJ per day for ~15 years from the proposed Shenandoah South Pilot Project.
Tamboran and the Beetaloo Joint Venture (BJV) have signed a binding long-term Gas Sales Agreement (GSA) to supply the Northern Territory Government (the Buyer) with 40 TJ per day (~19 TJ per day net to Tamboran) from the proposed Shenandoah South Pilot Project for an initial term of nine years (131.4 PJ Total, ~62.4 PJ net to Tamboran), starting in H1 2026. The Buyer has an option to extend the GSA for a further six-and-a-half years through to 2042.
The daily volume under the GSA represents approximately two-thirds of the Northern Territory's current gas requirements.
Gas will be delivered to the APA-owned Amadeus Gas Pipeline (AGP) on a take-or-pay basis at a market-competitive gas price, escalating at 100% of the Consumer Price Index (CPI). The Buyer's extension option is at a slightly discounted price.
The binding supply commitment is conditional on the BJV entering into a binding Gas Transportation Agreement with APA on 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 will be targeting FID on the proposed Shenandoah South Pilot Project in mid-2024, with first production planned by H1 2026.
Tamboran holds a 47.5% working intertest in the 51,200-acre area that will include the wells required to deliver the proposed Pilot Project volumes.
Tamboran Resources Corporation Managing Director and CEO, Joel Riddle, said:
"We are proud to deliver on our commitment to provide the Northern Territory Government with long-term supply of gas from the Beetaloo Basin. Tamboran has always promised that our first gas production from the Basin would be to the benefit of Territorians and we are excited to play our part in boosting energy security in the Northern Territory.
"This is a transformational development for Tamboran and our partners, after ten years of hard work and more than A$500 million invested in Beetaloo exploration and appraisal activities. This represents a major milestone and puts Tamboran on a path where revenue from gas sales will support funding our future development phases, including supply to the East Coast gas market. In addition, the proposed Pilot Project is expected to provide initial royalties to both the Northern Territory Government and Traditional Owners within the region.
"With electricity in the Northern Territory predominantly sourced from gas-fired power, it is key that the Northern Territory has a readily available gas supply to keep the lights on. Due to the use of natural gas in the electricity supply, the Northern Territory is well below the national average for emissions intensity across Australia's electricity network, especially NSW, Victoria and Queensland who rely heavily on coal."
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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