The Northern Territory is backing gas developments as it looks to shore up energy security in the state and on the east coast of Australia.
Tamboran Resources’ Shenandoah South pilot project is a key part of this, with the NT Government underwriting $75 million of a $180 million debt facility to support Shenandoah South, located in the Beetaloo Basin.
Tamboran announced yesterday it had reached a final investment decision for Shenandoah South, paving the way for first gas sales from mid-2026.
It comes after the company secured stakeholder consent from Native Title Holders, the Northern Land Council and the NT Government, bringing to life a basin which has been explored since the 1990s.
“I believe the Beetaloo Basin has the potential to transform not only the Northern Territory, but Australia’s east coast as a whole,” Tamboran chairman and interim chief executive officer Richard Stoneburner said.
“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.”
With the NT Government having confirmed its goal to achieve net zero emissions by 2050, plenty of research has explored how greenhouse gas (GHG) emissions from the Beetaloo Basin can be mitigated and offset.
The CSIRO has been an active researcher, releasing a report in February 2023 exploring abatement options.
The national science agency assumed the production of shale gas from Beetaloo Basin and analysed five scenarios (four of which involved gas production of 365 petajoules [PJ] per year and one which involved 1130PJ/year of gas production).
The emissions that could be abated across a 25-year lifetime ranged from 164–826 million tonnes (Mt) of carbon dioxide equivalent (CO2e), equating to 6.6–33Mt CO2e per year.
Tamboran Resources sees its Sturt Plateau compression facility as a key asset to reduce Scope 1 emissions, with the plant set to capture vented gases before they are released into the atmosphere.
The NT Government recognises that natural gas has an important role to play to ensure energy security as the green transition accelerates. But what CO2e abatement distinctly looks like on the ground at the Shenandoah South project won’t be known until the asset comes online.
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