Tamboran Resources Limited Selects APA as Preferred Beetaloo Pipeline Partner
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TAMBORAN RESOURCES LIMITED
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Sydney, Australia (ABN Newswire) - Tamboran Resources Limited (ASX:TBN) (OTCMKTS:TBNNY) has selected APA Group (ASX:APA) as the preferred transmission pipeline partner for Tamboran's Beetaloo Basin development following a six-month competitive process.
APA and Tamboran have signed a term sheet, which is planned to be converted into a longerform agreement in the coming months, to jointly develop gas transmission pipelines to connect Tamboran's Beetaloo Basin assets to Australia's domestic East Coast gas market and Tamboran's proposed Northern Territory LNG development at Middle Arm.
The principles of the term sheet between APA and Tamboran are that:
- APA will fully fund all activities proposed under the strategic partnership, including spending of up to $10 million on studies and approvals over the next twelve-months.
- APA will commence a project to install a gas pipeline connecting Tamboran's proposed pilot development at Shenandoah South (SS) to the Amadeus Gas Pipeline (AGP), targeting completion by 2025.
- When operational, the proposed SS to AGP pipeline would enable Tamboran's gas to stabilise the Northern Territory gas grid and commence sales under Tamboran's existing 36.5 PJ per annum (gross) Gas Sales Agreement (GSA) with Origin Energy (ASX:ORG).
- APA will further progress initial stages of a project to connect the Beetaloo Basin to its existing East Coast gas network to enable gas to flow by 2028.
The proposed projects and long-form agreements to be based on the term sheet are subject to further negotiations and approvals between APA and Tamboran.
Tamboran Resources Limited Managing Director and CEO, Joel Riddle, said:
