Tamboran Resources Ltd (ASX:TBN, OTC:TBNRF) has reached a significant milestone by signing non-binding memorandums of understanding (MoUs) with global energy giants BP and Shell. These MoUs pave the way for the supply of up to 4.4 million tonnes per annum of liquid natural gas (LNG) from Tamboran’s proposed NTLNG project at Middle Arm. The agreements offer BP and Shell the opportunity to each purchase up to 2.2 million tonnes of LNG annually over a 20-year period.
Gas Sourcing and Project Development
Tamboran Resources plans to source the gas for the NTLNG project from its Beetaloo Basin gas assets. However, before gas production can begin, Tamboran must complete concept select studies, appraisal drilling, and obtain necessary government approvals.
Strategic Significance and Financing Discussions
The signing of MoUs with BP and Shell represents a significant step forward in advancing the proposed NTLNG development at Middle Arm. Tamboran Resources’ managing director and CEO, Joel Riddle, expressed enthusiasm about securing partnerships with two of the world’s largest LNG portfolio trading and energy companies. BP and Shell serve as important and credible counterparties for Tamboran, facilitating financing discussions necessary for the sanctioning of the NTLNG project, which has the potential to produce up to 6.6 million tonnes per annum.
Riddle emphasized that the accelerated discussions with BP and Shell demonstrate their significant support for Tamboran. This further highlights the growing LNG demand in the Asia-Pacific region and underscores the importance of the NTLNG project in meeting that demand.
Future Steps and FEED Studies
Tamboran Resources intends to continue discussions with both BP and Shell as the front-end engineering and design (FEED) studies progress in 2024. The company targets formal execution of LNG sale and purchase agreements by 2025. These agreements will solidify the long-term partnerships between Tamboran and the energy giants, marking a crucial milestone towards the realization of the NTLNG project.
In summary, Tamboran Resources has achieved a significant breakthrough by securing non-binding MoUs with BP and Shell for LNG offtake from its proposed NTLNG project. These agreements not only validate the project’s potential but also establish partnerships with renowned industry leaders. As Tamboran progresses with its project development and feasibility studies, the support from BP and Shell will play a vital role in facilitating financing discussions and driving the NTLNG project towards its goal of becoming a major LNG supplier in the Asia-Pacific region.
