Herbert Smith Freehills has assisted Tamboran Resources Limited in reaching a significant milestone for its proposed LNG development, the Northern Territory LNG (NTLNG) project, and the Beetaloo Basin. Tamboran is the largest acreage holder and operator with ~1.9 million net prospective net acres in the Beetaloo Basin of Australia's Northern Territory. Through these interests, the Company holds net 2U net contingent resources of 150 trillion cubic feet, one of the world's largest undeveloped gas basins. The project and this development with bp and Shell have the potential to deliver substantial low CO2 gas volumes to both the domestic and international markets, while also creating long-term employment opportunities in Darwin and the Beetaloo Basin.
Tamboran has signed non-binding memorandums of understanding (MoUs) with two of the world's largest LNG portfolio trading and energy companies, bp and Shell for the supply of up to 4.4 million tonnes per annum of LNG from the proposed NTLNG project at Middle Arm Sustainable Development Precinct. The two MoUs offer bp and Shell the opportunity to each purchase up to 2.2 million tonnes of LNG per year over a 20-year period.
Tamboran has also selected APA Group, a leading Australian energy infrastructure business, as the preferred transmission pipeline partner for their Beetaloo Basin development. Together, Tamboran and APA Group will jointly develop gas transmission pipelines to connect Tamboran's Beetaloo Basin assets to Australia's domestic East Coast gas market and Tamboran's proposed NTLNG development at Middle Arm.
Tamboran Managing Director and CEO Joel Riddle said: "Securing these MoUs with bp and Shell is a significant step in progressing the proposed NTLNG development at Middle Arm. bp and Shell are two of the world's largest LNG portfolio trading and energy companies and provide important and credible counterparties for Tamboran to progress financing discussions to support the sanctioning of the NTLNG project, capable of producing up to 6.6 MTPA."
Herbert Smith Freehills partners Alexander Currie (Riyadh) and senior associate Joanne Elson (London) were the key team members advising the Tamboran team with teams from Sydney, Melbourne, London and New York.
Alexander said: "We are delighted to assist Tamboran on their exciting global scale LNG and pipeline gas project. Gas is a key primary energy source which will be needed for many decades to come. The gas from the Beetaloo Basin will be some of the lowest CO2 gas produced anywhere. This project would help Australia with reliable energy during the energy transition, as well as supply international customers."
