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Tamboran Resources Starts Commissioning Gas Facility in Australia's Beetaloo Basin

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Tamboran Resources said on Tuesday it had begun commissioning a key gas-processing facility in Australia's Northern Territory, as the company moves closer to commercial production from the Beetaloo Basin.

The Sturt Plateau Compression Facility Trust, a 50-50 joint venture between Tamboran and Daly Waters Infrastructure, has begun commissioning the facility with gas from wells at Tamboran's Shenandoah South 2 pad.

The facility will be capable of processing gas up to 50 terajoules per day, with 40 TJ/d contracted to the Northern Territory government under a long-term, take-or-pay gas sales agreement.

Tamboran said that the project remains on schedule and within its gross P50 budget of AU$141 million ($99 million).

The energy firm said all five wells on the Shenandoah South 2 pad had been drilled, stimulated and connected to the facility, and that it expects to begin gas sales to the Northern Territory government soon.

According to a Bloomberg report on Tuesday, the milestone marks a step toward unlocking onshore reserves that the territorial government forecasts will generate more than AU$17 billion ($12.2 billion) over the next two decades.

Tamboran has invested about $120 million in the project's initial stage, which will supply limited volumes to the local market, with the company ultimately targeting an output of 20 billion cubic meters annually, a scale matching about half of Australia's total national consumption, Bloomberg reported.

Meanwhile, the Northern Territory government said long-term contracts for Beetaloo gas would replace more expensive emergency gas arrangements previously used to ensure reliable power generation.

It also projected that the contracts would put downward pressure on energy costs while improving supply reliability.

"This project means Territory gas powering Territory homes, businesses and industry," Northern Territory Chief Minister Lia Finocchiaro said, describing the start of production as a turning point for the Territory.

The regional government did not disclose the price of the new gas contracts, but Finocchiaro said the fixed price secured for the next decade was one with which the government was "extremely satisfied."

The Northern Territory government said development of the Beetaloo would strengthen both regional and national energy security while creating economic opportunities for the Territory.

The Beetaloo Basin is projected to become a significant new source of gas supply for Australia's east coast and Northern Territory markets.

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