Tamboran targets financing for Australia's NTLNG project in 2024-25
Sydney-listed Tamboran Resources, a Beetaloo-focused gas company, is planning to develop the Northern Territory LNG (NTLNG) project in the state of Northern Territory. The project is aimed at developing a fully integrated onshore LNG facility in the Northern Territory, with operations spanning upstream, midstream, and downstream activities. The NTLNG development is expected to be supported by the gas sourced from the Beetaloo basin.
The state government has granted Tamboran exclusivity over a 170-hectare site within the Middle Arm Sustainable Development Precinct. The site has the potential to host an initial LNG capacity of 6.6mn tonnes/year, with the possibility of expansion in the future. The Middle Arm Sustainable Development Precinct, located south of Darwin, is already home to the Ichthys LNG and Darwin LNG developments.
The exclusivity period allows Tamboran to progress through the ‘concept select’ phase for the NTLNG project, which includes conducting studies, appraisal drilling, flow testing in the Beetaloo basin, and obtaining necessary government approvals.
Tamboran aims to begin LNG production by 2030, with a focus on ensuring sufficient gas supply for the Northern Territory and east coast gas markets. It has signed LNG supply agreements with BP and Shell. The company is also conducting front-end engineering design (FEED) studies for a proposed 100mn ft3/day domestic pilot development, with Origin Energy already contracted for the purchase of volumes over a 10-year period.
In a conversation with NGW, a company spokesperson talked about the various aspects of the project and said that ‘concept select’ phase will take approximately six to seven months to complete and the financing of the project is expected during 2024/2025.
Q: How much time is the ‘concept select’ phase expected to take?
A: The concept select phase is the first major engineering project phase reaffirming Tamboran’s commitment to the rigorous development cycle for NTLNG. The phase will allow NTLNG to optimise the plant size, technology and configuration to best needs of customers and stakeholders including its commitment to a net-zero facility in the long term.
‘Concept select’ phase will take approximately six to seven months to complete and will deliver a total estimated cost and schedule and identify key opportunities to optimise the plant design to meet Beetaloo gas composition, local and environmental conditions specific to the Middle Arm site. It also aims to identify any key site constraints and the ultimate LNG expansion case for the Middle Arm site to assist the company in planning its upstream and middle stream operational infrastructure programmes.
Q: The company has signed MoUs with both BP and Shell for supply of 2.2mn t/yr of LNG each. Are there any more such MoUs expected in the near future?
A: Tamboran will evaluate opportunities to sell additional volumes prior to financing of the project, which is expected during 2024/2025, subject to successful flow tests from the Beetaloo basin assets. Typically, LNG projects look to secure 80-90% of volumes to support lending for the development.
Q: The NTLNG would have a capacity of 6.6mn t/yr, with the possibility of expansion in the future. What could be potential expansion that could be supported by your Beetaloo gas assets?
Tamboran will conduct work at Middle Arm to determine the total export volume capable on the land. It is too early to make definitive comments on the ultimate LNG expansion volumes which will be part of a broader assessment of upstream midstream and downstream processing infrastructure and capabilities.
Q: How do you see the medium and long term demand outlook for LNG given the increased attraction of renewable energy sources?
Medium term and long-term demand for LNG remains strong, as evidenced by the significant interest we have had since announcing the site at Middle Arm. Recent announcements by BP and Shell show that gas will play a key role in the energy transition in supporting uptake of renewables. This is echoed by BlackRock’s chief executive, Larry Fink, who has stated that gas has a ‘vital role’ to play in meeting energy needs.