Tamboran Resources Corp., operator of the Beetaloo joint venture (BJV), signed a binding agreement for a long-term gas sales agreement (GSA) to supply the Northern Territory Government with 13.8 billion cu ft/year from the proposed Shenandoah South pilot project within the Greater McArthur basin in the Northern Territory of Australia for an initial term of 9 years. The agreement includes an option to extend for a further 6 ½ years.
The daily volume under the GSA represents about two-thirds of the Northern Territory’s current gas requirements, Tamboran said in a release Apr. 23.
Under terms of the agreement, 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. The buyer’s extension option is at a slightly discounted price.
The agreement is a binding supply commitment 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 plant, reaching a final investment decision (FID) on upstream drilling activity, and receiving all necessary approvals to proceed.
BJV is targeting FID on the proposed 38 MMcfd upstream drilling program in mid-2024, subject to securing funding and key regulatory and stakeholder approvals. First gas flow is planned for first-half 2026 (OGJ Online, Mar. 26, 2024).
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. Falcon Oil & Gas Australia Ltd. holds a 5% working interest in the area.