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Tamboran and APA progress key pipeline agreements

APA and Tamboran have entered major pipeline agreements in the Northern Territory. Source: Dieter Meyer/Adobe Stock

Tamboran Resources have entered into three formal and binding agreements with APA Group to support the development of the company’s Beetaloo Basin assets.

“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 managing director and chief executive officer Joel Riddle said.

The first agreements is an early development agreement relating to the development of the 35-kilometre Sturt Plateau Pipeline (SPP) that is planned to connect the proposed 40 million cubic feet per day (MMcf/d) Sturt Plateau Compression Facility (SPCF) to the Amadeus Gas Pipeline (AGP) and, subject to achieving project milestones and executing further agreements, is targeting an online date as early as H2 2025.

The second is an early development agreement for development of a Beetaloo Basin to East Coast gas pipeline that aims to deliver material volumes (circa 500 MMcf/d or more) into Australia’s East Coast gas market and, subject to achieving project milestones and executing further agreements, is targeting an online date as early as 2028.

Lastly, APA and Tamboran have entered a partnering agreement under which Tamboran agrees to work exclusively with APA and, subject to conditions being met, provides an option for Tamboran to acquire up to 15 per cent of any Beetaloo pipeline projects in the lead up to Final Investment Decision (FID) (excluding the SPP).

“This is a major milestone to bringing much needed natural gas from the Beetaloo Basin to the Northern Territory and East Coast gas markets,” Riddle said.

“Tamboran and APA have committed to partnering to bring much needed supply to both markets, which are expected to see gas supply shortfalls in coming years.”

According to Riddle, under the agreements, APA will commence early development works associated with the SPP and Beetaloo to East Coast gas pipelines, including conditional expenditure of up to A$10 million to progress early work.

“The parties have agreed a gas transportation framework that provides Tamboran with a market-based tariff structure on the proposed pipelines,” he said.

Subject to certain conditions being met, Tamboran has an option to acquire a 15 per cent interest in new pipelines that emanate from Tamboran’s Beetaloo Basin acreage, exercisable in the lead up to Final Investment Decision.

“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,” Riddle said.

“Without local investment in new gas, Australians could be relying on gas imports from other countries at international gas prices.

“I also see the basin playing a role in the energy transition by supporting the local uptake of renewable energy, as wind and solar displaces coal fired power. Without natural gas, grid stability would be increasingly more difficult and more expensive.”

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