Upstream article 6/22/23: Tamboran secures facilities for potential grassroots Australia LNG project
Operator lines up liquefaction and compression for Beetaloo production as early as 2024
22 June 2023 3:46 GMT UPDATED 22 June 2023 3:46 GMT
By Amanda Battersby in Singapore
Australian independent Tamboran Resources has secured exclusivity over compression and mini-liquefied natural gas facilities for potential early production from its Beetaloo basin gas assets in Australia’s Northern Territory.
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Tamboran has entered into a framework agreement with the Clean Energy Fuels Australia (CEFA) group of companies to obtain exclusivity over gas compression and liquefaction facilities for potential early production from the Beetaloo basin.
These facilities have the potential to accelerate gas production and minimise flaring from appraisal wells under the Northern Territory's "beneficial use of gas" regulation as early as 2024, subject to standard regulatory, stakeholder and joint venture consents and approvals.
The companies will work together to finalise a contract for long-term use of the compression and gas conditioning facilities for the proposed pilot project. Exclusivity will last until the end of this year when the parties expect to move into longer term arrangements.
The existing compression facilities can be expanded to utilise any available capacity in either the Amadeus Gas Pipeline or McArthur River Pipeline, noted Tamboran.
Tamboran has also secured exclusivity over a mini-LNG facility for four months, which could be deployed to supply remote NT communities or mines by the end of 2024, subject to approvals.
"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,” said Tamboran chief executive, Joel Riddle.
"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.”
He added: "It can sometimes take years to secure this type of infrastructure, and we look forward to working with the Clean Energy Fuels Australia team to progress these agreements. The team has demonstrated strong commercial thinking in offering a solution to achieve early production through this legislative change."
Tamboran’s stated aim is 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 NT.
The company’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.
