Tamboran Resources has signed a Framework Agreement with the Clean Energy Fuels Australia (CEFA) group of companies, including Clean Energy Fuels Australia Marketing Pty Ltd (CEFAM), to gain exclusive access to gas compression and liquefaction facilities for potential early production from the Beetaloo Basin.
According to Tamboran, under the Northern Territory‘s “beneficial use of gas” regulation, these facilities have the ability to expedite gas production and reduce flaring from appraisal wells as early as 2024, subject to customary regulatory, stakeholder, and joint venture consents and clearances.
The parties will collaborate to establish a contract for the proposed pilot development’s long-term usage of the compression and gas conditioning facilities. The exclusivity period will terminate at the end of 2023 when the parties plan to enter into longer-term agreements.
The current compression facilities in either the Amadeus Gas Pipeline (AGP) or the McArthur River Pipeline (MRP) may be extended to use any available capacity.
Tamboran has also won four months of exclusivity over a mini-LNG facility, which may be deployed to service isolated NT communities or mines by the end of 2024, pending permits.
The region’s LNG supply intends to provide a cleaner and more cost-effective alternative to diesel for electricity production and fuel in the transportation and mining industries. This is consistent with the “Emissions Reduction Guidelines” of the Australian Government’s Clean Energy Regulations.
“Securing exclusivity over these facilities is a significant step towards achieving first production from the Beetaloo Basin and providing low reservoir CO2 gas to local communities and industry that are currently reliant on diesel for fuel and electricity generation,” Tamboran Resources Limited Managing Director and CEO Joel Riddle said.
Riddle stated, “We have committed to the Northern Territory Government to deliver early gas from the Beetaloo Basin to the domestic NT market. This is the first step in fulfilling our promise to provide these remote communities with alternative affordable and cleaner fuel.”
“It can sometimes take years to secure this type of infrastructure, and we look forward to working with the Clean Energy Fuels Australia team to progress these agreements. The team has demonstrated strong commercial thinking in offering a solution to achieve early production through this legislative change,” Riddle added.
