Australia's Tamboran pens two new gas supply pacts

Sydney-listed Tamboran Resources has entered into non-binding letters of intent (LoIs) with Alinta Energy and ENGIE for the supply of an additional 90 - 125 terajoules/day (33 - 45 petajoules/year) of gas, it announced on August 28.

The LoIs brings the potential volume of Tamboran's Beetaloo basin gas supply to a range of 600 - 875 terajoules/day (220 - 320 petajoules/year) over a period of 10 - 15 years. The LoIs are contingent upon the parties reaching non-binding term sheets and eventually signing binding gas sales agreements (GSAs), which will outline key terms including purchase price, transportation arrangements, and other commercial aspects.

Upon finalising the binding GSAs, Tamboran intends to advance APA Group's proposed pipeline connecting the Beetaloo basin to the Australian east coast gas transmission network. The company envisions commencing the supply of the first gas through this new Beetaloo to east coast pipeline by 2028, pending commercial flow rates from its Beetaloo basin assets and requisite regulatory approvals.

Tamboran plans to commence first gas via the new proposed Beetaloo to east coast pipeline in 2028, subject to commercial flow rates from its Beetaloo basin assets and standard approvals.

"We continue to experience significant interest in purchasing low-reservoir CO2 gas from our Beetaloo basin assets delivered into the east coast over the long term. We believe this demonstrates the longevity of demand for gas on the east coast,” Tamboran CEO, Joel Riddle, said:

Earlier this month, Tamboran signed four separate LoIs with prominent energy retailers, including Origin, AGL, Energy Australia, and Shell Energy Australia to supply gas from its Beetaloo assets.