Tamboran enters Binding APA agreements to deliver SPP
Sydney, Dec 17, 2024 AEST (ABN Newswire) - Tamboran Resources Corporation (
ASX:TBN) (NYSE:TBN) (TBNNY:OTCMKTS) and Daly Waters Energy, LP (DWE) have entered into binding agreements with APA Group (ASX:APA) whereby APA will build, own and operate the 12-inch diameter Sturt Plateau Pipeline (SPP) for the proposed Shenandoah South (SS) Pilot Project.
The 23-mile (37 kilometre) SPP will connect the proposed Sturt Plateau Compression Facility (SPCF) to the existing APA-owned Amadeus Gas Pipeline (AGP), the delivery point for gas volumes under the Gas Sales Agreement (GSA) with the Northern Territory Government.
Tamboran and DWE have contracted all foundation capacity on the SPP from the commencement of operations until at least 2041, which reflects the term of the GSA and have competitive access and pricing rights to contract capacity following completion of the initial term.
APA has materially progressed the SPP project, with detailed design and approval applications well progressed. APA expects to place orders for the long-lead packages before the end of 2024.
Construction of the pipeline is expected to occur in 2H 2025, with the SPP available to accept gas from the SS Pilot Project in 1H 2026.
Tamboran Resources Corporation Managing Director and CEO, Joel Riddle, said:
"We continue to secure key agreements necessary to commence gas production from our proposed Shenandoah South Pilot Project in the first half of 2026. Gas volumes from the Pilot Project will be supplied to the Northern Territory Government through a binding GSA for up to 15.5 years, facilitated by the APA operated SPP.
"With natural gas serving as the largest source of electricity generation in the Northern Territory, Tamboran is proud to play a critical leading role in ensuring a reliable energy supply for Territorians - keeping the lights on and air conditioners running. In delivering this, we are committed to following the highest environmental standards and with the support of Native Title Holders.
"We are excited to continue our partnership with APA Group, Australia's largest gas pipeline operator, to deliver this project. APA's experience in the Northern Territory, including ownership of the AGP, which links Alice Springs to Darwin via the Beetaloo Basin, underscores their role in supporting the region's energy infrastructure."
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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