Tamboran selects APA as Beetaloo pipeline partner
Australian gas company Tamboran Resources has selected APA Group as the preferred transmission pipeline partner for the development of its Beetaloo basin project in the Northern Territory, the company said on June 23.
The partnership aims to harness the vast potential of the Beetaloo basin by establishing gas transmission pipelines that will connect Tamboran's assets to Australia's domestic east coast gas market and the proposed Northern Territory LNG (NTLNG) development at Middle Arm.
Tamboran is developing the NTLNG project over a 170-hectare site within the Middle Arm Sustainable Development Precinct and has signed non-binding MoUs with BP Singapore and Shell Eastern Trading for the potential supply of LNG from the project.
Tamboran and APA have signed a term sheet that outlines the principles of their collaboration, with plans to convert it into a comprehensive agreement in the near future. Under the agreement, APA will provide full funding for all proposed activities, including an allocation of up to A$10mn for studies and approvals over the next twelve months.
One of the initiatives outlined in the term sheet is the installation of a gas pipeline connecting Tamboran's pilot development at Shenandoah South (SS) to the Amadeus Gas Pipeline (AGP), with a target completion date of 2025. This pipeline will not only stabilise the Northern Territory gas grid but also enable Tamboran to commence sales under its existing gas sales agreement (GSA) with Origin Energy, Tamboran said.
Furthermore, the partnership envisions the development of a pipeline that will connect the Beetaloo basin to APA's established east coast gas network, allowing for gas flow by 2028. The pipeline's projected capacity of over 500mn ft3/day aims to address the anticipated market shortfall in the southern states of Australia as forecasted by the Australian Energy Market Operator (AEMO) by 2030.
The proposed projects and the subsequent long-form agreements between Tamboran and APA Group are subject to further negotiations and regulatory approvals.