Tamboran Resources Corporation (NYSE:TBN, ASX:TBN, OTC:TBNRL, FRA:O8R) has begun gas commissioning of the Sturt Plateau Compression Facility (SPCF) at its Shenandoah South development in the Beetaloo Basin, bringing the company closer to first gas sales to the Northern Territory Government.
The milestone comes alongside a non-binding memorandum of understanding with Liberty Energy (NYSE: LBRT) aimed at extending their hydraulic fracture stimulation and wireline services partnership for up to five years.
Commissioning moves Shenandoah South towards first gas
The SPCF Trust, a 50/50 joint venture between Tamboran and Daly Waters Infrastructure, has begun commissioning the facility using gas from wells on the Shenandoah South 2 pad.
The facility is designed to process 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 for up to 14 years. Construction remains on schedule and within its P50 gross budget of A$141 million, or about US$99 million.
All five wells on the Shenandoah South 2 pad have been drilled, stimulated and tied back to the facility, positioning Tamboran to begin gas sales once commissioning is completed.
“Commissioning of the Sturt Plateau Compression Facility with gas from the SS2 well pad is a major milestone for Tamboran and the Beetaloo Basin. Full credit goes to the Tamboran team, our partners, as well as our key contractors, who have delivered the project on schedule and within budget," Tamboran CEO Todd Abbott said.
“With all five wells on the Shenandoah South 2 pad drilled, stimulated and tied back to the facility, we look forward to imminently delivering first gas sales of up to 40 TJ/d to the Northern Territory Government under our long-term gas sales agreement, powering Northern Territory businesses and residences.
“The Beetaloo Basin is well positioned to deliver future energy security for Australia and our trading partners across the Asia Pacific, whilst also delivering lasting job and economic opportunities for Territorians and Native Title Holders.”
Liberty partnership targets multi-year development
Separately, Tamboran and Liberty Energy intend to extend their existing Beetaloo hydraulic fracture stimulation and wireline services agreement for an initial three years from September 1, 2026, to August 31, 2029, with a mutual option for a further two years.
The MOU remains non-binding and is subject to negotiation and execution of definitive agreements.
Liberty, which began Beetaloo stimulation operations in January 2025, operates Australia’s largest stimulation fleet. In July, the companies completed the basin’s largest stimulation campaign to date, placing 178 stages across about 30,000 feet of Mid Velkerri B Shale and completing the Beetaloo’s first three-well zipper stimulation.
Liberty also intends to begin introducing lower-emissions pumping equipment from 2027. The companies plan to evaluate a next-generation completions fleet that could use locally produced Beetaloo gas to power operations, reducing diesel consumption and heavy vehicle movements.
“Liberty has been a foundational partner in the Beetaloo since before their first stage was pumped,' Abbott said.
“The service quality and execution they have delivered have moved us down the cost curve faster than we expected, and this MOU sets out a clear path to the operational certainty we need to plan a multi-year development program.
“A three-year term with a two-year option gives us that continuity while retaining flexibility as the basin scales. Their intent to phase in lower-emissions equipment aligns directly with our objective of producing Beetaloo gas on a Scope 1 Net Zero basis.”