Tamboran Reaches FID on Its Shenandoah South Pilot Project, Australia
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The Beetaloo joint venture (BJV) has made a final investment decision (FID) for the Shenandoah South Pilot Project, which is currently on track to commence first gas sales from mid-2026.
The decision by the BJV to take FID follows the signing of agreements with Native Title Holders, the Northern Land Council, and the Northern Territory Government to secure approvals required to commence sales of appraisal gas under the Beneficial Use of Gas (BUG) legislation.
Tamboran and Daly Waters Infrastructure (DWI) have also secured up to $118 million via a three-tranche financing facility with a consortium of lenders for the construction of the Sturt Plateau Compression Facility (SPCF).
Tamboran is now in a position to fund its share of the upstream drilling and stimulation of the remaining Pilot Project wells required to reach plateau production and construction of the SPCF, subject to successful completion of the remaining wells, and receiving the $15 million from DWE for the recent acreage sale and a research and development (R&D) tax incentive payment in respect of eligible expenditure for FY25.
The Pilot Project has been designed to provide long-term production testing of multiple wells that has, alongside additional resource delineation, the potential to sanction a large-scale development to the East Coast gas market.
“The decision to sanction the Pilot Project is a major milestone in the history of Tamboran Resources, the Beetaloo Basin, and the Northern Territory. As Tamboran moves from an explorer to first gas sales, I would like to thank all those who have made this possible. I believe the Beetaloo Basin has the potential to transform not only the Northern Territory, but Australia’s East Coast as a whole,” said Tamboran Resources Chairman and Interim CEO, Richard Stoneburner.
“The gas sales agreement that underpins this project is expected to deliver energy security for Territorians. It also aims to provide opportunities for NT businesses and service providers, as well as paying royalties to the Northern Territory Government and delivering financial benefits to the Native Title Holders,” added Stoneburner.
“Tamboran is proud to continue its commitment to the Northern Territory. We plan to continue investing in the Northern Territory economy and community. This includes growing our corporate and operational presence in the NT, as well as creating more NT jobs and working with and utilizing local businesses, with a strong focus on supporting opportunities for the Native Title Holders,” concluded Stoneburner.
FINAL INVESTMENT DECISION FOR THE PILOT PROJECT
The BJV has taken FID for the Pilot Project, having secured key stakeholder approvals from Native Title Holders, the Northern Land Council and the Northern Territory Government, and entry into key agreements with the APA Group and the SPCF Trust, and receipt of board approval.
These key agreements include:
• An unconditional gas sales agreement (GSA) between the BJV and the Northern Territory government to supply 40 TJ per day of gas with a fixed gas price, escalated annually at Australian Consumer Price Index (CPI). The pricing is confidential.
• A gas processing agreement with the SPCF Trust (50 percent Tamboran, 50 percent DWI) that underpins financing of the SPCF infrastructure with a consortium of lenders and the operations of the facility.
• A gas transportation agreement with the APA Group to utilize the Sturt Plateau Pipeline (SPP) and deliver gas to the sales point at the inlet of the Amadeus Gas Pipeline (AGP).
Tamboran currently plans to commence the sale of appraisal gas to the Northern Territory Government in mid-2026, following the completion of construction of the SPCF and stimulation of the remaining three of five wells. Long-term production testing of the five wells is expected to deliver plateau production of 40 TJ/d (~39 MMcf/d), with additional wells required to maintain plateau production over the duration of the gas contract.
Tamboran Resources is a public natural gas company with a vision of supporting the net zero CO₂ energy transition in Australia and Asia-Pacific through developing low CO₂ unconventional gas resources in the Northern Territory of Australia.
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