Australia's Beetaloo Basin Set to Sell First Shale Gas in September

en.Wedoany.com Reported - On August 21, the Beetaloo Basin in Australia's Northern Territory plans to launch its first shale gas sales in September. The Shenandoah South pilot project, operated by Tamboran Resources, intends to initially supply 40 terajoules per day of natural gas to the Northern Territory government, equivalent to approximately 37 million cubic feet per day, marking the project's transition from exploration and appraisal to multi-well long-term production testing and market sales.

Tamboran Resources has completed fracturing, well cleanout, and completion operations on wells SS-3H, SS-4H, and SS-5H, which, together with two previously established production wells, form the initial gas supply well cluster. A total of 178 fracture stages were completed across the three wells, covering approximately 30,000 feet of horizontal section, with plans to connect to the Sturt Plateau compression facility. The facility has a total budget of approximately A$141 million and is nearing completion, set to enter commissioning.

Supporting export infrastructure is already in place. APA Group confirmed on August 20 that construction of the Sturt Plateau pipeline, connecting the Shenandoah South project to the Amadeus Gas Pipeline, has been completed. The 37-kilometer pipeline, built at a cost of approximately A$66.5 million, has a designed delivery capacity of 40 terajoules per day, allowing treated gas to be transported via the existing pipeline network to Darwin power facilities.

The project has obtained a sales permit from the Northern Territory government under the appraisal gas utilization regime and has signed a binding gas sales agreement. The agreement stipulates the supply of 40 terajoules per day of natural gas to the Northern Territory government, with pricing based on a fixed benchmark adjusted in line with the Australian Consumer Price Index. Relevant Aboriginal land rights agreements permit the project to sell up to 60 terajoules per day of appraisal gas over three years, though the initial supply phase will proceed at 40 terajoules per day.

The Carpentaria pilot project, operated by Beetaloo Energy, also plans to commence gas supply later in 2026, with an initial supply of approximately 15 terajoules per day. The combined output of the two gas streams totals approximately 55 terajoules per day, roughly equivalent to Darwin's current average daily natural gas consumption.

According to Geoscience Australia statistics, as of 2024, the Beetaloo Basin has identified approximately 7.13 trillion cubic feet of 2C contingent shale gas resources, though no proved and probable reserves have yet been established. The initial multi-well production testing will be used to observe production decline rates, per-well costs, and sustained drilling conditions, providing a basis for subsequent expansion of supply capacity and construction of long-distance export infrastructure.