Tamboran Resources Ltd (ASX:TBN) believes its licences in the Beetaloo Basin of the Northern Territory will offer a low-CO2 opportunity to meet Australia’s natural gas needs following the recent ratification of the Federal Safeguard Mechanism (Crediting) Amendment Bill 2023.
The bill establishes limitations on CO2 emissions for oil and gas projects – among other emitters.
The government believes the new raft of emission regulations will put Australia on track to achieve emission reduction targets of 43% by 2030.
“Attractive” source of energy
“The benefit of Beetaloo Basin gas is that low reservoir CO2 will provide an attractive source of energy in Australia’s Northern Territory and East Coast markets as coal-fired power stations are decommissioned and gas-fired power is used to complement the uptake of renewable energy,” Tamboran Resources managing director and CEO Joel Riddle said.
“Beetaloo gas also has the potential as a low CO2 source of gas supply for the manufacturing industry, which consumes approximately 45% of gas sold to the domestic market and employs approximately 225,000 people in Australia.
“Gas is a key input in the manufacturing of fertilisers, glass, cement and bricks.
“As the existing East Coast gas supply falls from the Gippsland Basin and Cooper Basin, Beetaloo gas is expected to be a key supply source in meeting the anticipated shortfall forecast by the Australian Competition and Consumer Commission (ACCC) and Australian Energy Market Operator (AEMO).”
Tamboran points to Recommendation 9.8 of the Pepper Inquiry, which states that developing the Beetaloo Basin should have “no net increase in the life cycle GHG emissions emitted in Australia”.
The company is already targeting Net Zero scope 1 and 2 equity emissions from the beginning of commercial production, which will involve electrification of facilities and equipment, including Helmerich and Payne’s (H&P) super-spec FlexRig®, which is enroute to Darwin.
TBN’s operations continue in the Basin as planned, with the Amungee 2H (A2H) well on exploration permit EP 98 currently flowing back stimulation fluid.
Read: Tamboran Resources completes 25-stage stimulation program in Beetaloo Basin; 30-day initial production flow rates expected next quarter
Tamboran expects 30-day initial production (IP30) rates from the well to be available in the second quarter this year.