Energy infrastructure company Jemena has announced a Beetaloo Basin deal that will add impetus to a $5 billion plan to boost its Northern Gas Pipeline.
The company said it would reveal details today at the SEAAOC Conference, being held as part of the Northern Territory’s Resources Week.
It has signed a binding Memorandum of Understanding (MOU) with Tamboran Resources, the holder of premium acreage in the highly prospective Beetaloo / McArthur basin.
The MOU will see Jemena expedite plans to invest more than $5 billion to increase the capacity of the NGP while also working to extend that pipeline from the Northern Territory’s Beetaloo Basin to the Wallumbilla Gas Hub in Queensland.
As a result of the partnership, Jemena plans to progressively increase the NGP’s capacity from around 90TJs of gas per day to 1000TJs through a combination of compression and looping.
The NGP would then be connected to the company’s proposed Galilee Gas Pipeline, which will span around 585km and transport gas from Galilee Energy’s Glenaras project near Longreach to the Wallumbilla Gas Hub.
“This is an important step towards delivering on the Commonwealth Government’s plans for the Beetaloo as part of a gas-led recovery from the COVID-19 pandemic,” Jemena managing director Frank Tudor said.
“Through this partnership we hope to expedite the pace at which we can bring much-needed additional gas to market, while creating around 4000 jobs – many in regional Australia.
“We hope that our partnership with Tamboran is the catalyst the market is seeking to spark the development of the Beetaloo Basin and drive Australia towards energy security, while also spurring economic development across the NT for generations.”
Jemena anticipates transporting up to 200TJs of gas per day via the NGP from 2025, with transport quantities increasing as the extended and expanded pipelines are commissioned from the second half of the 2020s.
Jemena is also considering construction of a pipeline north from the Beetaloo into Darwin once new LNG trains or local demand centres have been sanctioned, which Jemena believes could occur in the late 2020s.