The Northern Territory Government has provided Tamboran Resources Ltd (ASX:TBN, OTC:TBNRF) exclusivity over 170 hectares (420 acres) on the Middle Arm Sustainable Development Precinct (Middle Arm) for a proposed LNG development, Northern Territory LNG (NTLNG).
NTLNG is expected to be supported by low reservoir carbon dioxide (CO2) gas from the Beetaloo Basin.
The Middle Arm acreage has been allocated on a “Do Not Deal” basis for twelve months, allowing Tamboran to progress a Concept Select phase for a proposed NTLNG development.
“Potential to deliver large and scalable volumes”
Tamboran managing director and chief executive officer Joel Riddle said: “Securing a strategic site at Middle Arm is a significant milestone for Tamboran and the Beetaloo Basin.
“The enormous scale of the Basin means that the low reservoir CO2 natural gas has potential to deliver large and scalable volumes over the long term not only for Australia’s East Coast gas market, but also to international markets.
“Providing affordable natural gas to Australia and our regional partners is anticipated to enable a reduced dependency on coal fired power generation, while delivering a significant reduction in global greenhouse gas emissions.”
Targeting first LNG production by 2030
The site under exclusivity is expected to host a Liquefied Natural Gas (LNG) development with an initial capacity of 6.6 million tonnes of LNG per annum (MTPA), with the potential for expansion, subject to completion of the Concept Select study, successful Beetaloo appraisal drilling and flow testing, and Government approvals.
NTLNG represents the first fully integrated onshore LNG development in Northern Australia where upstream, midstream and downstream production and processing are based in the Northern Territory.
Tamboran is targeting first LNG production by 2030, with a near-term commitment to ensure Australia’s Northern Territory and East Coast gas markets are well supplied.
FEED studies remain ongoing for the proposed 100 million standard cubic feet per day (mmscfd) domestic pilot development, with volumes contracted to Origin Energy Ltd (ASX:ORG) for 10 years.
“This is an exciting opportunity for Territorians”
Riddle added: “If deemed commercial, Tamboran aims to sanction the proposed LNG development by 2026, with first volumes anticipated to commence by 2030.
“This is an exciting opportunity for Territorians, which not only has the potential to deliver significant jobs in Darwin and the Beetaloo Basin over the long term, but also deliver hundreds of millions of dollars in royalties to the Northern Territory Government and Native Title Holders, as well as benefits to the regional community and across the NT.
“Tamboran is also fully committed to working within the Middle Arm’s Strategic Environmental Assessment (SEA) framework.
“Within the SEA framework, Tamboran will seek to maximise economic benefits locally and nationally and plans to avoid, mitigate and offset any social or environmental impacts from the development.
“We are excited to be working closely with the Northern Territory Government in realising their vision for the Middle Arm precinct and transformation of the NT’s economy to reach $40 billion by 2030.”