Australia's Tamboran pens gas supply LoIs with four energy buyers

Tamboran Resources on August 2 announced the signing of four separate non-binding letters of intent (LOIs) with prominent energy retailers, including Origin, AGL, Energy Australia, and Shell Energy Australia to supply gas from its Beetaloo assets.

Under the LOIs, the parties have expressed interest in purchasing an aggregate of 510 - 750 terajoules/ day (equivalent to 185 - 270 petajoules/year) of gas from Tamboran. The proposed purchase contracts are expected to extend over a period of up to 10 - 15 years.

"The initial interest from key east coast gas buyers for the long-term purchase of Tamboran's low-reservoir CO2 Beetaloo basin gas volumes demonstrate gas' viability and role in the energy transition in Australia,” Tamboran CEO, Joel Riddle, said.

The binding gas sales agreements, which are currently being worked on separately with each party, will encompass vital aspects such as purchase price, transportation arrangements, and other crucial commercial terms.

Commencement of gas supply is targeted for 2028, contingent upon achieving commercial flow rates from Tamboran's Beetaloo basin gas assets. This development will support the progress of APA Group's proposed pipeline project between the Beetaloo basin and the east coast gas transmission network, the company said.

APA Group has already initiated preliminary land access approvals and pre-engineering studies, with the aim of establishing a connection between the Beetaloo and the existing east coast gas grid.

Tamboran is planning to develop the Northern Territory LNG (NTLNG) project in the state of Northern Territory. The NTLNG development is expected to be supported by the gas sourced from the Beetaloo basin.