Under the deal, Tamboran Resources will provide gas to Territory power stations for nine years.
The Northern Territory Government has entered a new arrangement to purchase gas from the Beetaloo Basin for electricity generation.
The gas arrangements, between the Northern Territory Government and Tamboran Resources, is designed to provide competitively priced gas for the Territory’s electricity generation and back the growth of the Territory’s on-shore gas industry.
Once Tamboran has secured access to the necessary pipelines and received all required permits and approvals, supply to the Northern Territory Government will become unconditional.
This historic deal aims to ensure that Territory residents, businesses and industry will share in the benefits of the growing on-shore gas industry by delivering cleaner and more affordable natural gas for power generation.
The first gas from the Beetaloo Basin is expected to be delivered to Territory power generators in 2026.
The deal is set to provide gas to Territory power generators for nine years, with an option to extend for another 6.5 years.
Tamboran Resources is working towards reaching a Final Investment Decision on its 40TJ per day pilot project by mid-2024 – a key milestone in the development of the Beetaloo Basin and growing the Territory’s on-shore gas industry.
The government said developing the Beetaloo Basin and boosting the on-shore gas industry will create thousands of work opportunities for Territorians and boost the economy by $17 billion.
Northern Territory Chief Minister, Eva Lawler, said, “We’re backing the industries that get the Territory working – and that’s why my government is supporting the on-shore gas industry.
“My common sense plan will make sure that the benefits from Territory gas are spread right across the Territory for local residents, businesses and industry.
“By making sure that Territory gas powers our electricity generators, we are powering the Territory’s future for years to come,” Ms Lawler said.
Northern Territory Minister for Mining, Mark Monaghan, said, “The Territory is on the cusp of becoming an energy powerhouse and we will make sure that Territorians share in the huge benefits to come from growing the on-shore gas industry.”
Northern Territory Minister for Essential Services, Kate Worden, said, “We’re focused on making sure we have environmentally sustainable, stable and affordable power for Territorians and Territory businesses – and that’s exactly what this agreement does.”
Tamboran Resources Managing Director and Chief Executive Officer, Joel Riddle, said, “We are proud to deliver on our commitment to provide the Northern Territory Government with long-term supply of gas from the Beetaloo Basin. Tamboran has always promised that our first gas production from the Basin would be to the benefit of Territorians and we are excited to play our part in boosting energy security in the Northern Territory.
“This is a transformational development for Tamboran and our partners, after ten years of hard work and more than $500 million invested in Beetaloo exploration and appraisal activities. This represents a major milestone and puts Tamboran on a path where revenue from gas sales will support funding our future development phases, including supply to the East Coast and LNG gas markets.
“The proposed pilot project is expected to provide initial royalties to both the Northern Territory Government and Traditional Owners within the region,” Mr Riddle said.
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