Tamboran Resources Corporation (NYSE:TBN, ASX:TBN) has taken another key step toward supplying gas in Australia’s Northern Territory on entering binding agreements with APA Group (ASX:APA) to deliver the Sturt Plateau Pipeline (SPP).
The agreement by Tamboran and Daly Waters Energy, LP, (DWE) will see APA build, own and operate the 12-inch diameter, 37-kilometre SPP for the proposed Shenandoah South Pilot Project in the Beetaloo Subbasin.
This pipeline will connect the proposed Sturt Plateau Compression Facility (SPCF) to the existing APA-owned Amadeus Gas Pipeline (AGP), the delivery point for gas volumes under the Gas Sales Agreement with the Northern Territory Government.
Key agreements
Tamboran Resources managing director and CEO Joel Riddle said: “We continue to secure key agreements necessary to commence gas production from our proposed Shenandoah South Pilot Project in the first half of 2026.
"Gas volumes from the pilot project will be supplied to the Northern Territory Government through a binding GSA for up to 15.5 years, facilitated by the APA-operated SPP.”
The agreements with APA by Tamboran and DWE include execution of a Development Agreement, long-term Gas Transportation Agreement (GTA) and Connection Agreement.
The company’s shares have been as much as 9.24% higher on the ASX to $0.142.
Sales agreement progress
Tamboran and DWE have contracted all foundation capacity on the SPP from the start of operations until at least 2041, which reflects the term of the Gas Sales Agreement and have competitive access and pricing rights to contract capacity following completion of the initial term.
APA has materially progressed the SPP project, with detailed design and approval applications well progressed. APA expects to place orders for the long-lead packages before the end of 2024.
To play leading role
“With natural gas serving as the largest source of electricity generation in the Northern Territory, Tamboran is proud to play a critical leading role in ensuring a reliable energy supply for Territorians – keeping the lights on and air conditioners running,” Riddle said.
"In delivering this, we are committed to following the highest environmental standards and with the support of Native Title Holders.
“We are excited to continue our partnership with APA Group, Australia’s largest gas pipeline operator, to deliver this project.
“APA’s experience in the Northern Territory, including ownership of the AGP, which links Alice Springs to Darwin via the Beetaloo Basin, underscores their role in supporting the region's energy infrastructure.”
Construction of the pipeline is expected to occur in the second half of 2025, with the SPP available to accept gas from the Shenandoah South Pilot Project in the first half of 2026.
In national interest
APA’s CEO and managing director Adam Watson said the project highlighted ongoing growth opportunities across APA’s gas transmission network and its critical role supporting energy security and transition.
“The development of the Beetaloo Basin is in the national interest. We know there are significant risks of domestic gas shortfalls in the years ahead and that new sources of supply will be required from 2028 to meet supply gaps,” he said.
“Approximately 88 per cent of electricity generated in the Northern Territory comes from gas-fired power generation and around 60 per cent of the Northern Territory’s gas supply from 2026 is forecast to come from Tamboran’s first pilot gas development.
“So, this new infrastructure is critical to ensuring gas from the Beetaloo will be available to power the Northern Territory as existing gas supply sources deplete.”
Tamboran Resources, through its subsidiaries, is the largest acreage holder and operator with approximately 1.9 million net prospective acres in the Beetaloo Subbasin within the Greater McArthur Basin in the Northern Territory.