Tamboran Resources Set for Major Gas Production at Beetaloo’s Shenandoah South Project

Long-considered one of the world’s most significant undeveloped gas provinces, the Beetaloo Sub-basin has achieved a major milestone with a joint venture led by Tamboran Resources (ASX: TBN) announcing the go-ahead for the Shenandoah South pilot project.

The project will provide long-term production testing of multiple wells, offering the potential to sanction a large-scale development to the east coast of Australia gas market.

The partners expect first gas sales to commence from the Northern Territory project in mid-2026.

Key Commercial Documents

The final investment decision comes after the JV executed key commercial documents with leading gas pipeline developer APA and the Sturt Plateau Compression Facility trust.

They have also signed agreements with native title holders, the Northern Land Council, and the Northern Territory government for the necessary approvals to allow the sales of appraisal gas under the Beneficial Use of Gas legislation.

Tamboran expects to complete a current three well drilling program in 4Q 2025, before progressing to flow-testing of the Shenandoah South 4H well in early 2026.

NT Government Backing

The NT government, which has signed a binding agreement for the first supplies of gas of 40 terajoules per day with Tamboran, welcomed the news.

It believes the Sturt Plateau Pipeline (SPP) alone could provide up to 60% of NT’s gas-fired electricity generation.

“This is about protecting Territorians’ access to affordable and reliable power, while creating jobs, training, and business opportunities in regional communities,” NT minister for mining and energy Gerard Maley said.

The federal government has also recognised the significance of the region’s potential, with its Beetaloo Strategic Basin Plan, the first of five it intends to implement.

The National Gas Infrastructure Plan is another to emphasise the importance of the Beetaloo in meeting shortfalls across the east coast gas market over the next 20 years.

SPCF Funding Agreement

Tamboran and JV partner Daly Waters Energy have secured $180 million from a consortium of lenders to build the Sturt Plateau Compression Facility (SPCF).

The SPCF will process the appraisal gas before metering and feeding it into the $70m SPP currently under construction, for delivery to the Amadeus Gas Pipeline.

“The decision to sanction the pilot project is a major milestone in the history of Tamboran Resources, the Beetaloo Basin, and the Northern Territory,” Tamboran Resources chair Richard Stoneburner said.

“We expect this project to deliver energy security to Territorians and provide a pathway to potentially securing long term energy security for Australia’s east coast gas market, which the ACCC and AEMO anticipate will be in shortfall by the end of this decade.”