• Natural Gas News

    Tamboran set for Northern Territory LNG pre-FEED by mid-2024 [Gas in Transition]


Tamboran expects to start financial discussions once it enters the pre-FEED stage, ahead of taking a final investment decision in late 2026.

by: Shardul Sharma

Posted in:

NGW News Alert, Natural Gas & LNG News, Asia/Oceania, Top Stories, Asia/Oceania, Premium, Gas In Transition Articles, May 2024, News By Country, Australia

Tamboran set for Northern Territory LNG pre-FEED by mid-2024 [Gas in Transition]

Sydney-listed Tamboran Resources has started preparing for pre-frontend engineering design (FEED) for its proposed 6.6mn tonnes/year Northern Territory LNG (NTLNG) development at the Middle Arm Sustainable Development Precinct in Darwin, and expect to announce details in mid-2024, a company spokesperson recently told NGW.

The company has completed the concept select studies with Wood Group with key decisions made regarding size, liquefaction technology, plant layout and schedule that will set the scope for pre-FEED studies. Wood was awarded the contract for the concept select phase in July last year. Tamboran expects to conclude discussions with a preferred engineering services contractor in the next few months ahead of commencement of pre-FEED in mid-2024.

Tamboran Resources, a Beetaloo-focused gas company, is planning to develop the NTLNG project in the state of Northern Territory. The project is aimed at developing a fully integrated onshore LNG facility in the Northern Territory, with operations spanning upstream, midstream, and downstream activities. The NTLNG development is expected to be supported by the gas sourced from the Beetaloo basin.

The state government has granted Tamboran exclusivity over a 170-hectare site within the Middle Arm Sustainable Development Precinct. Tamboran aims to begin LNG production by 2030, with a focus on ensuring sufficient gas supply for the Northern Territory and east coast gas markets. It has signed LNG supply agreements with BP and Shell and is in discussions with several parties regarding the contracting of the remaining NTLNG volumes.

“We are in discussions with several parties regarding the contracting of the remaining NTLNG volumes. We plan to update the market once these discussions have concluded,” the spokesperson said. 

The company plans to start financial discussions on the project once it moves into pre-FEED by the middle of this year.

“Tamboran plan to commence ("mature the NTLNG financing strategy") financial discussions once we move into the pre-FEED stage and aim to have this finalised by the time we take FID in late 2026, subject to completion of FEED studies and securing of funding,” the spokesperson said. 


Resource upgrade at Beetaloo 

In February, Tamboran announced an increase in its 2C gas resources across the Beetaloo Basin. The spokesperson said that the recent location at Shenandoah South has de-risked a large development area.

“We recently increased our 2C gas resources across the Beetaloo basin to 2.1 trillion ft3 (net Tamboran). The recent location at Shenandoah South has de-risked a million-acre development area, which could provide gas volumes to the proposed NTLNG development,” he said.

The company late last year entered into a strategic partnership and received a $10mn (A$15.3mn) equity investment from NYSE-listed energy services firm, Liberty Energy. As part of this collaboration, Liberty plans to import a modern frac fleet into the Beetaloo Basin in 2024 to support the stimulation campaign for Tamboran’s proposed Shenandoah South pilot project, which is planned to commence production in 2026. 

Tamboran has recently increased its working interest in the Shenandoah South pilot project to a minimum of 47.5%. This decision comes after Falcon Oil & Gas chose to limit its participation to 5% in the joint venture's second Shenandoah South well pad (SS2) and the two wells in the 2024 drilling programme.

As part of the 2024 drilling programme, two wells will be drilled, creating two drilling spacing units (DSUs) covering 51,200 gross acres around the SS2 well pad.

Tamboran and its Beetaloo joint venture partner Falcon recently inked a deal with the Northern Territory government to supply 40 TJ/day of gas from the proposed Shenandoah South pilot project. 

The company recently completed its re-domiciliation from Australia to the US. This process involved transferring all ordinary shares to a newly formed corporation based in Delaware, which now serves as the parent company of the entire Tamboran Group.

On May 6, the company announced its intention to list its common stock on the NYSE through a US Initial Public Offering (IPO). This move is designed to enhance liquidity and access deeper capital markets, complementing its existing listing on the Australian Securities Exchange (ASX).

Capital raised via the US IPO is expected to fund Tamboran's activity in the Beetaloo basin, including delivering production from the proposed Shenandoah South pilot project. Tamboran is targeting a final investment decision (FID) following completion of the IPO in mid-2024.


LNG/gas to complement uptake in renewable energy

Tamboran remains bullish about the future of LNG/gas despite the growth in renewable energy. 

“LNG will complement the uptake in renewable energy, supporting base load power at times when the sun isn't shining, and wind isn’t blowing,” the spokesperson said. “It is also an important source of energy for countries that do not have the geography to incorporate large scale renewable energy resources. The benefit of natural gas is that it can be a cheaper, faster, and less disruptive way to offset emission by replacing coal fired power across not only Australia, but the Asia Pacific region,” he added.