Australia’s Tamboran inks deal for small LNG facility

Australian firm Tamboran has entered into a framework deal with the Clean Energy Fuels Australia (CEFA) group of companies to obtain exclusivity over gas compression and liquefaction facilities for potential early production from the onshore Beetaloo Basin.

According to a statement by Tamboran, these facilities have the potential to accelerate gas production and also minimize flaring from appraisal wells under the Northern Territory’s “beneficial use of gas” regulation as early as 2024, subject to standard regulatory, stakeholder and joint venture consents and approvals.

The framework deal includes Clean Energy Fuels Australia Marketing (CEFAM), a joint venture between (CEFA), Tamboran, and the Mitchell Group.

Perth-based CEFA, backed by US infrastructure investor I Squared Capital, is developing the Mount Magnet LNG production hub in Western Australia.

Mini LNG facility

Tamboran said that the parties will now work together to finalize a contract for long-term use of the compression and gas conditioning facility for the proposed pilot development.

Exclusivity will last until the end of 2023 when the parties expect to move into longer term arrangements, it said.

The existing compression facilities can be expanded to utilize any available capacity in either the Amadeus Gas Pipeline (AGP) or McArthur River Pipeline (MRP), it said.

Also, Tamboran has secured exclusivity over a mini-LNG facility for four months, which it could deploy to supply remote NT communities or mines by the end of 2024, subject to approvals, it said.

The supply of LNG into the region aims to provide a “cleaner and economic alternative” to diesel for electricity generation and fuel in the transport and mining industries, the firm said.

Tamboran managing director and CEO, Joel Riddle, said in the statement that securing exclusivity over these facilities is a “significant” step towards achieving first production from the Beetaloo Basin.

He said that the firm has committed to the NT government to deliver early gas from the Beetaloo Basin to the domestic market and this is the first step in fulfilling the company’s promise.

Large LNG terminal

Tamboran is also targeting first LNG production from its proposed 6.6 mtpa LNG plant in NT by 2030 after it secured land for the development.

Ealrier this month, Tamboran said that the government has provided the firm exclusivity over 170-hectares (420-acres) on the Middle Arm Sustainable Development Precinct for its project, Northern Territory LNG (NTLNG).

The LNG project would receive gas from the onshore Beetaloo Basin.

The Middle Arm Sustainable Development Precinct is located on a peninsula south of Darwin that already hosts the Inpex-led Ichthys LNG plant and also the Santos-led Darwin LNG terminal.

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