Tamboran Fires Up Gas Facility to Deliver 40 TJ/d Under 14-Year Government Deal
Key Takeaways
- Gas commissioning of the Sturt Plateau Compression Facility has commenced using gas from the Shenandoah South 2 well pad, putting Tamboran on the verge of its first commercial gas sales.
- First gas sales of up to 40 TJ/d to the Northern Territory Government under a take-or-pay structure are described as imminent, with a contract term of up to 14 years providing long-duration revenue certainty.
- The SPCF has been delivered on schedule and within its P50 gross budget of A$141 million (~US$99 million), demonstrating project execution discipline at a major infrastructure scale.
- All five Shenandoah South 2 pad wells are drilled, stimulated, and tied back to the facility — no remaining well work stands between Tamboran and first gas delivery.
- The SPCF anchor contract sits within a broader Beetaloo Basin position of approximately 2.8 million net prospective acres, the largest acreage holding in the basin's depocenter.
Gas commissioning begins at the Sturt Plateau Compression Facility
The SPCF Trust, a 50/50 Joint Venture between Tamboran and Daly Waters Infrastructure, LP (DWI), has commenced gas commissioning of the Sturt Plateau Compression Facility (SPCF), using gas from wells on the Shenandoah South 2 (SS2) well pad. The BJV is now positioned to imminently deliver first gas sales of up to 40 TJ/d to the Northern Territory Government under a long-term, take-or-pay gas sales agreement (GSA). The project remains on schedule and within its P50 gross budget of A$141 million (~US$99 million).
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What the SPCF means for Tamboran investors
A compression facility is the critical processing link between raw wellhead gas and the pipeline network that delivers it to customers. Without it, gas extracted from the ground cannot be pressurised, cleaned, and pushed into the market at commercially usable volumes. The SPCF is that link for the Shenandoah South Pilot Area, and its commissioning brings Tamboran to the doorstep of its first gas revenue.
The GSA with the Northern Territory Government (NTG) carries a take-or-pay structure, meaning the NTG is contractually obligated to pay for the contracted gas volume regardless of whether it physically takes delivery. For investors, that structure provides meaningful revenue certainty once first gas sales begin.
During the commissioning period, gas will be sold to the NTG at a discounted rate under the long-term GSA. This is standard industry practice during the transition from construction to full commercial operation, and is temporary in nature.
Key facility and contract details:
- Facility capacity: 50 TJ/d (~48.5 MMcf/d)
- Contracted volume: 40 TJ/d (~38.8 MMcf/d)
- Contract term: up to 14 years
- Counterparty: Northern Territory Government
- Well status: All five SS2 pad wells drilled, stimulated, and tied back to the facility
| Owner | Capacity | Contracted Volume | Contract Term | P50 Budget |
|---|---|---|---|---|
| SPCF Trust (50% Tamboran Resources, 50% Daly Waters Infrastructure, LP) | 50 TJ/d (~48.5 MMcf/d) | 40 TJ/d (~38.8 MMcf/d) | Up to 14 years | A$141M (~US$99M) |
On schedule, on budget — the numbers behind the milestone
Delivering a major gas processing facility on schedule and within the P50 gross budget of A$141 million (~US$99 million) is a meaningful signal of project execution discipline. The P50 budget represents the median cost estimate — not a ceiling, not a floor — making delivery within it a credible measure of cost control.
The SPCF is owned by the SPCF Trust, with Tamboran and Daly Waters Infrastructure, LP each holding a 50% interest. DWI is under common ownership with Tamboran’s upstream joint venture partner, Daly Waters Energy, LP. With all five SS2 pad wells drilled, stimulated, and tied back to the facility, the physical prerequisites for first gas sales are now in place.
Todd Abbott, Chief Executive Officer, Tamboran Resources Corporation
“Commissioning of the Sturt Plateau Compression Facility with gas from the SS2 well pad is a major milestone for Tamboran and the Beetaloo Basin. Full credit goes to the Tamboran team, our partners, as well as our key contractors, who have delivered the project on schedule and within budget.”
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Beetaloo Basin’s role in Australia’s energy future
The SPCF commissioning milestone sits within a much larger strategic picture. Tamboran holds approximately 2.8 million net prospective acres, making it the largest acreage holder in the Beetaloo Basin depocenter. The NTG take-or-pay GSA functions as an anchor contract: it establishes a foundation of contracted revenue from which further commercial scale-up can be pursued.
CEO Todd Abbott has pointed to the broader significance of the Beetaloo Basin, noting its potential to deliver future energy security for Australia and trading partners across the Asia-Pacific, while also creating lasting employment and economic opportunities for Territorians and Native Title Holders.
Near-term milestones to watch from this announcement:
- Imminent first gas sales of up to 40 TJ/d to the Northern Territory Government
- Commissioning period gas sales at a discounted rate under the GSA, consistent with industry practice
For investors tracking Tamboran’s development trajectory, the commencement of SPCF gas commissioning marks the transition from construction-stage asset to revenue-generating infrastructure, with contracted volumes and a long-term government counterparty already in place.
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