Australian firm Tamboran has entered into two non-binding memorandums with units of energy giants Shell and BP to supply liquefied natural gas from the company’s proposed LNG plant in Australia’s Northern Territory.
Under the deals, Shell Eastern Trading and BP Singapore would each purchase up to 2.2 million tonnes of LNG per annum over a 20-year period.
Tamboran is targeting first LNG production from its proposed 6.6 mtpa NTLNG plant on the Middle Arm Sustainable Development Precinct by 2030.
It said in the statement that the volumes have the potential to be supplied from its Beetaloo Basin onshore gas assets, subject to completion of the concept select studies, successful Beetaloo appraisal drilling, and also government approvals.
Tamboran said it will progress discussions with both BP and Shell prior to the completion of the FEED in 2024 and aims for formal execution of the LNG sale and purchase agreements in 2025.
“Significant step”
The company’s managing director and CEO, Joel Riddle, said in the statement that securing these MoUs with BP and Shell is a “significant step” in progressing the proposed NTLNG development at Middle Arm.
“BP and Shell are two of the world’s largest LNG portfolio trading and energy companies and provide important and credible counterparties for Tamboran to progress financing discussions to support the sanctioning of the NTLNG project, capable of producing up to 6.6 mtpa,” he said.
“We look forward to progressing our agreements with both parties, who have both shown significant support to Tamboran through the accelerated discussions, which further emphasize the importance of LNG demand growth in the Asia-Pacific region,” Riddle said.
Besides this large LNG plant, Tamboran recently 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 Beetaloo Basin.
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.