Natural gas production begins in Australia’s Beetaloo Basin

AFTER decades of development and planning, natural gas production has begun in Australia’s Beetaloo Basin in the Northern Territory (NT), one of the country’s largest onshore gas reserves.

Natural gas company Tamboran Resources and exploration firm Daly Waters Energy have sold their first gas to the NT from its Shenandoah South Pilot Project (SS2) in the basin.

Beetaloo spans around 28,000 sq km and is capable of producing 430 tn cubic feet of gas.

Optimistic projections have slated SS2 to produce 38.8 m cubic feet per day by 2027, providing a steady and stable domestic gas supply to Australia.

With its first gas achievement, the company is more focused on “energy security” for Australia.

Natural gas has been a volatile market in Australia over the last few years due to competition from China and the Middle East. Beetaloo has been part of a long drawn-out planning process, which has been estimated to require more than $10bn to support its pipeline. Early developers of the basin included Australian energy giant Origin, which eventually had to sell its stake at a loss in 2022 in a bid to move towards renewable ventures.

However, the disruption caused by the US and Iran conflict this year has grown new interest in Australia’s gas reserves, particularly in the NT.

Tamboran said: “We believe the Beetaloo Basin has the potential to become a major new source of gas supply, delivering long-term benefits for the NT and, over time, playing an important role in Australia and the Asian region’s energy security.” 

Climate impact

Scientists and climate organisations have called production at the basin a “climate bomb”, with analytics and policy firm Climate Analytics estimating that the basin would produce 1.2bn of greenhouse gas (GHG) emissions over 25 years to 2050.

Tamboran is in contract for SS2 with the NT government for 15 years, and requirements from it and the Australian Federal Government have provided strict regulations on emissions control.

With its agreement, SS2 is obligated to only produce Scope 1 direct emissions. According to the company’s 2024 GHG abatement plan, it expects to reduce its SS2 Scope 1 emissions by 1.1m t by selling appraisal gas to be used for electricity generation within the NT.

Despite the basin providing a lifeline for Australia’s energy security, organisations have warned that the emissions produced by the basin will add to the country’s overall output and expose areas of Australia to extreme climate-affected conditions.

The Australian Conservation Foundation said: “Some parts of the NT are predicted to be unliveable within 40 years due to climate change.”