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    Tamboran books access to Australia's Northern Gas Pipeline

Summary

The Sydney-listed company has signed a binding memorandum of understanding with infrastructure company Jemena.

by: Shardul Sharma

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Tamboran books access to Australia's Northern Gas Pipeline

Beetaloo-focused Tamboran Resources has signed a binding memorandum of understanding with infrastructure company Jemena to contract 100 terajoules/day of capacity through the Northern Gas Pipeline (NGP), the company said on June 27.

The long-term transportation access agreement with Jemena will support the sanctioning of the proposed Maverick pilot development, planned for the end of the calendar year 2023, Tamboran said. Over the calendar years 2022 and 2023, it plans to drill three horizontal wells within EP 136.

Based on a Netherland, Sewell and Associates maturation study, if successful, these wells could deliver approximately 1 trillion ft3 of 2C contingent resources, sufficient to support the proposed Maverick pilot development, the company said. Tamboran is targeting initial production from the development by the end of the calendar year 2025.

Tamboran will now start the front end engineering and design studies to progress the proposed Maverick pilot development. It will commence stakeholder engagement activities for the selected pipeline route and secure NGP access agreements with Jemena, planned to be completed during the second half of the calendar year 2022.

"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,” Tamboran CEO, Joel Riddle, said.

The company was awarded a grant of up to A$7.5mn ($5.5mn) through the Australian government's Beetaloo cooperative drilling programme in March this year. Tamboran's key assets in Northern Territory's Beetaloo sub-basin are a 25% interest in EP 161 and 100% interest in EP 136, EP 143 and EP(A) 197.