Energy

Tamboran wins right to use Northern Gas Pipeline, key tickbox for Maverick project

Mon 27 Jun 22, 4:23pm (AEST)
Generic image of a gas pipeline
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Key Points

  • Tamboran has executed an agreement with east coast energy player Jemena to use the Northern Gas Pipeline
  • Tamboran intends to use the NGP to send gas from the Beetaloo Basin to the east coast
  • Tamboran now moving to FEED for Maverick Pilot Development (MPD); shares are up 2.27%

Tamboran Resources (ASX:TBN) has executed a binding memorandum of understanding (MOU) with Jemena to use the latter’s Northern Gas Pipeline (NGP). 

Tamboran can now book 100TJ per day of natural gas through the pipeline to the east coast, allowing Tamboran to export gas interstate and beyond via NGP. 

How much gas will be sold domestically remains to be seen. The company is intending to sell cheap gas to Japan from its Maverick Development in the NT.

Maverick will start producing gas in late 2025. 

A map of major pipelines across the east of the continent (AEMO). The NGP starts top left
A map of major pipelines across the east of the continent (AEMO). The NGP starts top left

Company launches FEED, but where does the NGP go? 

The MOU enables Tamboran to launch FEED studies for the Maverick Gas Development in the prolific NT Beetaloo Basin. 

The 620km long NGP runs from NT’s Tennant Creek to QLD’s Mt. Isa, where it connects to APA’s Carpentaria pipeline.

Carpentaria is the key link between the NGP and a larger pipeline network spreading down Australia’s east coast into major cities.

The NGP is crucial as it allows Tamboran’s Maverick gas to ultimately end up at export docks. 

Currently, there is no optimal pipeline asset connecting Beetaloo and Darwin Port. 

Busy few years ahead 

Despite copping heavy sell-offs year to date, the company is proceeding with its plans, now strengthened by major energy operator Jemena.

Development of the Tanumbirini 2H and 3H wells will continue through 2022, a seismic campaign is set for the second half of the year.

Fracking of wells within the secondary EP 136 licence will start later this year; Tamboran is hoping to devise a 2C contingent gas resource of over 1 trillion cubic feet by early 2023. 

Should that be logged as planned, it is far more likely the Maverick development will move to a positive financial decision. 

The biggest sword dangling over the heads of Tamboran investors: what international energy markets will look like in late 2025.

Tamboran's three month performance compared to the energy index (XEJ)
Tamboran's three month performance compared to the energy index (XEJ)

 

Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at [email protected].

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