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Tamboran Resources has exclusivity over compression and mini-LNG facilities in push for early Beetaloo production
20:14 Tue 20 Jun 2023
Ephrem Joseph
Tamboran Resources Ltd
ASX:TBN
OTC:TBNRF
Tamboran Resources Ltd -
Tamboran Resources Ltd (ASX:TBN, OTC:TBNRF) has signed a framework agreement with the Clean Energy Fuels Australia (CEFA) group to obtain exclusivity over gas compression and liquefaction facilities for potential early production from the Beetaloo Basin in Australia's Northern Territory.
This collaboration could fast-track gas production and reduce flaring from appraisal wells, aligning with the Northern Territory's regulations encouraging the "beneficial use of gas".
The new facilities could be operational as early as 2024, subject to obtaining the required regulatory and stakeholder approvals, as well as the joint venture's consent.
Affordable and cleaner fuel
Tamboran managing director and CEO Joel Riddle said: “Securing exclusivity over these facilities is a significant step towards achieving first production from the Beetaloo Basin and providing low reservoir CO2 gas to local communities and industry that are currently reliant on diesel for fuel and electricity generation.
"We have committed to the Northern Territory Government to deliver early gas from the Beetaloo Basin to the domestic NT market.
“This is the first step in fulfilling our promise to provide these remote communities with alternative affordable and cleaner fuel.”
Agreement terms
Under the terms of the agreement, the partnering organisations will actively collaborate to finalise a contract for the long-term use of the compression and gas conditioning facility.
In conjunction with the pilot development proposal, the exclusivity period is set to last until the end of 2023 when both parties anticipate transitioning into extended arrangements.
The existing compression facilities have the potential for expansion, increasing capacity to utilise the Amadeus Gas Pipeline (AGP) or the McArthur River Pipeline (MRP) based on availability.
In addition, Tamboran has secured four-month exclusivity over a mini-LNG facility.
This resource could serve remote Northern Territory communities or mining operations by the end of 2024, subject to necessary approvals.
Push towards cleaner fuels
The move to introduce LNG supply into the region is in line with the Federal Government's Clean Energy Regulations 'Emissions Reduction Guidelines'.
It presents a cleaner, more economical alternative to diesel for electricity generation and fuel in transport and mining industries, signifying an important step in transitioning towards cleaner energy sources.
This strategic agreement underscores the broader industry trend of leveraging cleaner fuels for various energy needs, setting a precedent for future collaborations in the energy sector.
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