The Finocchiaro CLP Government is delivering on its priority of reliable and affordable energy for Territorians by negotiating a better deal with Tamboran as part of an agreement to underwrite $75 million of the $180 million loan for a new compression facility to bring gas to market.
This marks a step change in the development history of the Beetaloo, with the first commercial pathway to market now cemented by Tamboran through:
The construction of the Sturt Plateau Pipeline (SPP)An approved Beneficial Use of Gas (BUG) Agreement with the Native Title holders; andThe FID of the Pilot Project.
Through binding gas sales agreements, the Territory has secured the first supplies from the Beetaloo, with Tamboran committing 40 terajoules per day (TJ/day) and Beetaloo Energy Australia up to 25 TJ/day-enough to meet the 55-60 TJ/day required to power essential services across the Territory.
Acting Chief Minister and Minister for Mining and Energy, Gerard Maley, said the CLP Government is delivering tangible results to ensure gas for Territory homes, businesses, industry, and manufacturing by bringing the gas supplies from the Beetaloo Sub-basin online.
"Labor left the Beetaloo in limbo for the best part of a decade. Labor delayed jobs, delayed royalties that should have been flowing into Territory services and put our own gas supply - needed to keep the lights on - at risk.
"We need gas generation to keep the electricity grid stable, and without new sources of gas, Territorians would be exposed to higher prices and costly emergency supply arrangements," Mr Maley said.
"Beetaloo holds enough gas to power the nation for 200 years, and unlocking its full potential will fuel a gas-led economic recovery for the Northern Territory after nearly a decade of Labor inaction."
In another first, Tamboran has secured approval from the CLP Government, under the Petroleum Act 1984, to sell appraisal gas from its Shenandoah South Pilot Project.
Gas that would have been flared will now flow directly into the local market from next year, and sales under this arrangement will generate the first Beetaloo gas royalties for the Territory.
"In our year of action, certainty, and security, the CLP Government moved swiftly to give companies like Tamboran the confidence to finally press go after years of delay.
To bring this gas to market, Tamboran and Daly Waters Energy have secured $180 million to build the Sturt Plateau Compression Facility (SPCF), which will process the appraisal gas before it is metered and fed into the $70 million, 37-kilometre Sturt Plateau Pipeline (SPP), for delivery to the Amadeus Gas Pipeline (AGP).
Construction is already underway on the SPP, being built by APA Group and supporting up to 150 jobs, to connect Tamboran's Shenandoah South Pilot Project to the AGP, which stretches from Alice Springs to Darwin.
Once operational, the SPP alone could provide up to 60 per cent of the Territory's gas-fired electricity generation.
"This is about protecting Territorians' access to affordable and reliable power, while creating jobs, training, and business opportunities in regional communities," Mr Maley said.
Earlier this year, Tamboran secured $100 million in equity funding to drive its drilling program, with record flow results, Traditional Owner approvals, and major infrastructure investment highlighting the accelerating pace of Beetaloo development.
