Tamboran signs Northern Territory LNG offtake MOUs with bp, Shell

Tamboran Resources Ltd. has signed two MOU with bp Singapore Pte. Ltd. and Shell Eastern Trading (Pte.) Ltd. for supply of 4.4 million tonnes/year (tpy) of LNG from Tamboran’s proposed 6.6-million tpy Northern Territory LNG (NTLNG) plant at Middle Arm Development Precinct in Darwin Harbor, Northern Territory, Australia. Shell and bp will purchase 2.2 million tpy each for 20 years.

Tamboran plans to complete NTLNG front-end engineering and design in 2024, targeting formal execution of the sales agreements the following year. Feed gas for the plant has the potential to be supplied from Tamboran’s onshore Beetaloo subbasin natural gas assets, subject to successful Beetaloo appraisal drilling and flow testing in the company’s operated permits, as well as government approvals.

The company earlier this month secured NTLNG’s site (OGJ Online, June 9, 2023).

Tamboran is the largest acreage holder (~1.9 million net prospective acres) and operator in Beetaloo. Its key assets include a 38.75% working interest and operatorship in exploration permits (EP) 98, 117, and 76, a 100% working interest and operatorship in EP 136, EP 143, and EP(A) 197, and a 25% non-operated working interest in EP 161, all in Beetaloo basin.

Tamboran will initially focus on development of the proposed EP 98 Pilot, targeting first production by end-2025, by which point it hopes to have booked a potential 5 tcf of proven-plus-probable (2P) reserves (OGJ Online, Nov. 23, 2022).