Tamboran Resources Ltd (ASX:TBN) has signed a Memorandum of Understanding (MoU) with Jemena Ltd to secure access to the Northern Gas Pipeline (NGP) for the company’s proposed 100 TJ per day Maverick Pilot Development in the core of Beetaloo Sub-Basin within the Northern Territory.
The company will now kick-off front end engineering and design (FEED) studies to progress the proposed Maverick Pilot Development.
What’s more, Tamboran will begin stakeholder engagement activities for the selected pipeline route and secure NGP access agreements with Jemena, planned to be completed during the second half of 2022.
“Strategically important”
Tamboran managing director and CEO Joel Riddle said: “It is strategically important for Tamboran to secure access to the Jemena-owned Northern Gas Pipeline, an important piece of infrastructure and currently the only gas pipeline route connecting the Northern Territory to Australia’s East Coast gas market.
“The binding MoU contemplates Tamboran securing firm capacity on the NGP of approximately 100 terajoules per day, which will support the sanctioning of the proposed Maverick Pilot Development.
“If the planned three well drilling program within our EP 136 permit is successful, we expect to book approximately 1 TCF of 2C contingent gas resources, convertible to 2P gas reserves upon finalisation of a gas sales agreement, which will support the Maverick Pilot Development.
“Production is targeted to commence by the end of the calendar year 2025, delivering much-needed gas molecules to the East Coast.
“Tamboran will now fully fund FEED activities for the proposed Maverick Pilot Development, which will involve the potential to integrate renewable technologies, in line with our aspiration to be a net-zero gas producer when production commences.”
Maverick Pilot Development
A long-term transportation access agreement with Jemena would support the sanctioning of the proposed Maverick Pilot Development, planned for the end of 2023.
Over 2022 and 2023, Tamboran plans to drill three horizontal wells within EP 136.
Based on a Netherland, Sewell and Associates, Inc (NSAI) maturation study, if successful, these wells could deliver about 1 trillion cubic feet (TCF) of 2C contingent resources, sufficient to support the proposed Maverick Pilot Development.
Tamboran is targeting initial production from the development by the end of 2025.
“Strong relationship”
Tamboran is strategically positioned to commercialise the resources to address a forecast domestic energy shortfall and as a feed supplier to existing Australian LNG plants.
Riddle adds: “Over the past two years, the Tamboran and Jemena teams have built a strong relationship, evaluating the most cost effective and efficient way to bring Tamboran’s low-carbon dioxide gas in the Beetaloo to Australia’s East Coast gas market.
“With the current state of the gas crisis on Australia’s East Coast, we are proud to play a part in the solution to not only deliver low-cost gas to Australian households, businesses and manufacturers, but also help reduce carbon dioxide emissions in the region where approximately 60 per cent of electricity generation is still from coal fired power.
“Development of the Beetaloo Sub-basin is expected to support Australia’s energy security and drive significant economic activity within the Northern Territory.
"This includes potential generation of billions of dollars in royalties to the Northern Territory Government and the creation of approximately 4,000 jobs in the region.”
About Jemena
Jemena owns and operates a diverse portfolio of energy processing and transportation assets in Australia.
With more than $12 billion of major utility infrastructure being operated and more than $1.2 billion in new midstream assets over the past decade, Jemena has developed industry-leading expertise to design, construct and operate gas processing and transmission pipelines that connect new fields to the East Coast market.
The company’s portfolio of owned and operated pipelines includes the Northern Gas Pipeline.
Jemena managing director Frank Tudor said: “This MoU will see Jemena support Tamboran’s investment in the Beetaloo Basin and establish a credible path to market for new gas utilising the existing Northern Gas Pipeline.
“Tamboran’s project will help place downward pressure on gas prices and we expect the development of the Beetaloo will create thousands of local jobs, many in regional parts of the Northern Territory.
“We have been impressed with the Tamboran operational team and their deep knowledge and experience in developing world-class shale resources and continue to believe that the NGP is the most efficient and effective way of bringing gas from the Northern Territory to Australia’s East Coast.”