Northern Territory Government Signs Gas Deal with Tamboran Resources
The Northern Territory government has signed a nine-year agreement with US gas company Tamboran Resources to purchase fracked gas from the Beetaloo Basin. This comes over a year after the NT government approved a full-scale onshore fracking industry in the basin, despite opposition from climate scientists, environmental groups, and some traditional owners.
The agreement will provide the NT with 40 terajoules of gas per day starting in 2026. However, Tamboran Resources has not yet reached a final investment decision for the project. Neither the company nor the government disclosed the cost of the deal.
This decision follows ongoing supply issues from Eni's Blacktip gas field. The NT government previously relied solely on Blacktip for gas, but now seeks to diversify its portfolio.
The agreement will last for an initial nine years, with an option to extend for another six-and-a-half years. Tamboran Resources will prioritize the territory's gas needs before supplying the east coast market or its own LNG project.
The deal has attracted criticism from environmental groups and some experts. They argue that the government should invest in renewables instead of fracking, and that the deal lacks transparency and could be commercially unviable without government support.
The NT government is currently buying gas from Santos' Darwin LNG plant to compensate for the shortfall from Eni's Blacktip field. However, this supply is due to run out soon. The government has also signed agreements to buy gas from Central Petroleum and potentially from Empire Energy.
Meanwhile, the operator of a pipeline connecting the NT to the east coast gas market is preparing to reverse its flow, potentially allowing the NT to import gas for the first time.