Australia's Tamboran pens non-binding LNG MOUs with BP, Shell

Australia-listed Tamboran Resources has signed two non-binding MoUs with BP Singapore and Shell Eastern Trading for the potential supply of LNG from its proposed Northern Territory LNG (NTLNG) project, it said on June 23.

Under the MoUs, both BP and Shell would have the option to purchase up to 2.2mn metric tons/year of LNG each, over a 20-year period.

The LNG volumes could be supplied from Tamboran's Beetaloo basin gas assets, subject to the completion of concept select studies, successful Beetaloo appraisal drilling, and obtaining government approvals.

Tamboran intends to continue discussions with BP and Shell prior to the completion of the front-end engineering design in 2024, with the aim of formalising the LNG sale and purchase agreements in 2025.

"BP and Shell are two of the world's largest LNG portfolio trading and energy companies and provide important and credible counterparties for Tamboran to progress financing discussions to support the sanctioning of the NTLNG project, capable of producing up to 6.6mn mt/yr,” Tamboran CEO Joel Riddle said.

Tamboran recently was granted exclusivity over a 170-hectare site within the Middle Arm Sustainable Development Precinct for the proposed NTLNG project. Earlier this week, the company announced a framework agreement with the Clean Energy Fuels Australia group of companies, including Clean Energy Fuels Australia Marketing. The agreement grants Tamboran exclusivity over gas compression and liquefaction facilities for potential early production from the Beetaloo basin.