Tamboran Resources and Daly Waters Energy have initiated initial gas sales from the Beetaloo Basin, marking the first delivery of local gas to the Northern Territory market. The company aims to ramp up to contracted volumes of 40 terajoules per day by early 2027 under a long-term agreement.
- First gas sales commenced from Shenandoah South Pilot Project
- Volumes expected to reach 40 TJ/d by early 2027
- Gas sold at discounted rates during commissioning
- Long-term take-or-pay contract with Northern Territory Government
- Beetaloo Basin positioned as future energy source for NT and East Coast
First Gas Sales Mark a Milestone for Beetaloo Basin
Tamboran Resources Corporation (ASX:TBN, NYSE: TBN) and its joint venture partner Daly Waters Energy have delivered the first volumes of natural gas from the Shenandoah South Pilot Project in the Beetaloo Basin, Northern Territory. This debut shipment represents the first-ever gas supplied from the Beetaloo Basin directly into the Northern Territory gas market, a significant step toward regional energy security and affordability.
Chief Executive Officer Todd Abbott highlighted the milestone as a key achievement for the company and the region, emphasising the economic benefits of locally sourced energy. The initial sales are part of a commissioning phase, during which gas is sold at discounted prices reflecting the interruptible nature of supply. Full ramp-up to the contracted 40 terajoules per day (TJ/d) is expected by early 2027, in line with the long-term take-or-pay agreement with the Northern Territory Government.
Infrastructure and Contractual Foundations in Place
The gas is delivered through the Sturt Plateau Compression Facility, a critical piece of infrastructure designed to support the supply of natural gas from the Beetaloo Basin to the Northern Territory market. The facility has a capacity of 50 TJ/d, comfortably accommodating the contracted volumes. This infrastructure milestone follows the recent commencement of gas commissioning activities, which have proceeded on schedule and within budget.
Tamboran’s strategy aims to establish the Beetaloo Basin not only as a reliable gas supplier for the Northern Territory but also as a potential contributor to the broader Australian East Coast energy market over time. The company holds approximately 2.8 million net prospective acres in the Beetaloo Basin, making it the largest acreage holder in the region and positioning it to leverage significant resource potential.
Challenges and Forward-Looking Considerations
While the initial gas sales mark a positive development, the commissioning phase includes inherent uncertainties. The discounted pricing during this period and the interruptible nature of supply suggest that full commercial terms are yet to be realised. Moreover, the ramp-up timeline to full contracted volumes by early 2027 remains subject to operational execution and market conditions.
Tamboran’s forward-looking statements acknowledge risks including the early stage of development, the need for additional capital, and the challenges of scaling production to commercial levels. The company also notes the importance of meeting environmental and regulatory requirements, including commitments to net zero Scope 1 emissions upon commercial production commencement.
As Tamboran moves toward full production, investors will be watching closely how the company navigates these operational and market challenges, and whether the Beetaloo Basin can fulfil its promise as a significant new source of natural gas for the Northern Territory and potentially beyond.
Bottom Line?
The first gas sales from Beetaloo Basin are a tangible step forward, but the path to full commercial production and market impact still carries operational and market risks.
Questions in the middle?
- How smoothly will Tamboran ramp up to the full 40 TJ/d contracted volume by early 2027?
- What pricing dynamics will emerge once commissioning discounts end and firm supply begins?
- Can the Beetaloo Basin development scale to meet broader East Coast market demands amid regulatory and environmental constraints?