Tamboran Resources has secured a pioneering approval from the Northern Territory Government to sell appraisal gas from its Beetaloo Basin exploration permits, marking a significant step toward local energy supply and revenue generation.
- First approval under Northern Territory’s Beneficial Use of Gas legislation
- Beetaloo Joint Venture cleared to sell up to 40 TJ/day starting mid-2026
- Drilling progressing on three wells to support plateau production
- Gas sales to enhance local energy security and accelerate royalties
- Collaboration with Native Title Holders and government pivotal
A Regulatory First for the Beetaloo Basin
Tamboran Resources Corporation has achieved a landmark regulatory milestone by obtaining the Northern Territory Government’s approval to sell appraisal gas under the newly enacted Beneficial Use of Gas (BUG) legislation. This approval allows the Beetaloo Joint Venture (BJV) to commercialise gas volumes during the exploration and appraisal phase, a departure from the traditional practice of flaring such gas.
The BUG legislation represents a strategic initiative by the Northern Territory Government to bolster local energy security by utilising gas that would otherwise be wasted. Tamboran’s approval is the first of its kind, setting a precedent for future projects in the region.
Advancing Toward Commercial Production
The BJV is preparing to commence gas sales of up to 40 terajoules per day to the Northern Territory Government under a binding Gas Sales Agreement (GSA) anticipated to start in mid-2026, subject to weather conditions. This supply will come from the Shenandoah South Pilot Project, where drilling activities are well underway.
Currently, three wells are being drilled to achieve plateau production levels necessary for the GSA. The drilling has progressed through the intermediate sections, with horizontal drilling in the Mid Velkerri B Shale at the SS-5H well actively ongoing. Stimulation of the SS-4H well is planned for the fourth quarter of 2025, followed by a 30-day flow test before connection to the Sturt Plateau Compression Facility for gas delivery.
Economic and Community Implications
Tamboran’s Chairman and Interim CEO, Richard Stoneburner, emphasised the significance of this approval not only for the company but also for the Northern Territory’s energy landscape. By converting appraisal gas into a marketable product, the project is expected to enhance energy security in a region heavily reliant on gas power generation.
Moreover, the arrangement accelerates royalty payments to both the Northern Territory Government and Native Title Holders, reflecting a collaborative approach to resource development. The recent consent from Native Title Holders to sell up to 60 terajoules per day underscores the importance of stakeholder engagement in advancing the project.
Looking Ahead
Tamboran’s extensive land holdings in the Beetaloo Basin and ongoing development activities, including the proposed NTLNG project in Darwin, position the company as a key player in the Northern Territory’s energy future. While the approval marks a critical step forward, the company remains mindful of the operational and environmental challenges inherent in exploration and production.
As drilling progresses and the project moves closer to commercial gas sales, market participants will be watching closely to assess the impact on regional energy supply and Tamboran’s financial trajectory.
Bottom Line?
Tamboran’s pioneering approval under the BUG legislation signals a new era for gas development in the Northern Territory, with energy security and royalties set to benefit, but execution risks remain.
Questions in the middle?
- Will Tamboran meet the mid-2026 gas sales commencement amid operational and weather uncertainties?
- How will accelerated royalties impact the Northern Territory Government’s budget and local communities?
- What are the environmental and regulatory hurdles ahead as production scales up?