Tamboran pens pipeline pacts with APA for Beetaloo development
Tamboran Resources December 18 announced the formalisation of three binding pipeline agreements with energy infrastructure firm APA, marking a step forward in the development of its Beetaloo basin assets in the Northern Territory.
The first agreement outlines plans for the early development of the 35-km Sturt Plateau pipeline (SPP). This pipeline is designed to connect the proposed 40mn ft³/day Sturt Plateau compression facility (SPCF) to the Amadeus gas pipeline (AGP), with an anticipated online date as early as H2 2025.
The second agreement focuses on the development of a Beetaloo basin to east coast gas pipeline, aiming to deliver a substantial 500mn ft³/day of gas to Australia's east coast gas market. Subject to project milestones and further agreements, this pipeline is projected to go online as early as 2028.
In the third and final agreement, Tamboran commits to an exclusive collaboration with APA and secures an option to acquire up to 15% of any Beetaloo pipeline projects leading up to the final investment decision (FID), excluding the SPP.
Since the execution of the letter agreement in June 2023, APA has made substantial progress on the Beetaloo basin pipeline projects, according to Tamboran. Under the early development agreements, APA has committed up to A$10mn for early works expenditure. This investment is contingent upon Tamboran's continued progress and achievement of agreed milestones, particularly concerning the proposed Shenandoah South pilot project.
The parties are set to initiate negotiations on a binding gas transportation agreement with an expected execution in H1 2024, subject to Tamboran meeting specific project milestones.
"We are excited to progress our June 2023 letter agreement with APA Group into binding early development and partnership agreements that support the development of Tamboran's Beetaloo Basin assets in the Northern Territory,” Tamboran CEO Joel Riddle said.
"I believe the development of the Beetaloo basin, which has potential to supply gas into the domestic market for the duration of the energy transition, has a major role to play in proving energy security for Australian families. Without local investment in new gas, Australians could be relying on gas imports from other countries at international gas prices,” he added.
Notably, Tamboran recently completed its re-domiciliation from Australia to the US. This process involved transferring all ordinary shares to a newly formed corporation, Tamboran US HoldCo, based in Delaware, which now serves as the parent company of the entire Tamboran Group.