Tamboran Resources enters MOUs with BP and Shell

Tamboran Resources (ASX:TBN) has signed two memorandum of understandings (MOU) with BP and Shell for the supply of 4.4mtpa of liquefied natural gas (LNG).

Coming from Tamboran’s proposed Northern Territory LNG (NTLNG) project at Middle Arm, the MOUs include volumes for BP and Shell to each purchase up to 2.2mtpa of LNG over a 20-year period.

Subject to completion of the concept select studies, government approvals and successful Beetaloo appraisal drilling, gas volumes have the potential to be supplied from Tamboran’s Beetaloo Basin gas assets.

Tamboran chief executive and managing director Joel Riddle said securing these two agreements is a significant step.

“Securing these MOUs with BP and Shell is a significant step in progressing the proposed NTLNG development at Middle Arm,” he said.

“BP and Shell are two of the world’s largest LNG portfolio trading and energy companies and provide important and credible counterparts for Tamboran to progress financing discussions to support the sanctioning of the NTLNG project, capable of producing up to 6.6mtpa.

“We look forward to progressing our agreement with both parties, who have both shown significant support to Tamboran through the accelerated discussions, which further emphasise the importance of LNG demand growth in the Asia-Pacific region.”

Tamboran will now progress discussion with both BP and Shell before the completion of the front end engineering design (FEED) in 2024.

Further, all companies are aiming for formal execution of the LNG sale and purchase agreements in 2025.