Tamboran Resources Ltd (ASX:TBN, OTC:TBNRF) has signed non-binding memorandums of understanding (MoU) with global gas and oil companies BP (LON:BP) and Shell (LON:RDSa) for supply of up to 4.4 million tonnes per annum of liquid natural gas (LNG) from the proposed NTLNG project at Middle Arm.
More specifically, the two MoUs offer BP and Shell the opportunity to each purchase up to 2.2 million tonnes of LNG per year over a 20-year period.
TBN intends to source the gas from its Beetaloo Basin gas assets, once concept select studies, appraisal drilling and government approvals are secured and completed.
“Significant” support, accelerated discussions
“Securing these MoUs with BP and Shell is a significant step in progressing the proposed NTLNG development at Middle Arm,” Tamboran Resources managing director and CEO Joel Riddle said.
“BP and Shell are two of the world’s largest LNG portfolio trading and energy companies and provide important and credible counterparties for Tamboran to progress financing discussions to support the sanctioning of the NTLNG project, capable of producing up to 6.6 million tonnes per annum.
“We look forward to progressing our agreements with both parties, who have both shown significant support to Tamboran through the accelerated discussions, which further emphasise the importance of LNG demand growth in the Asia-Pacific region.”
Tamboran will pursue further discussions with both BP and Shell as front-end engineering and design (FEED) studies progress in 2024, with a 2025 target for formal execution of LNG sale and purchase agreements.