Market Update - Safeguard Mechanism
Sydney, Mar 30, 2023 AEST (ABN Newswire) - Tamboran Resources Limited (ASX:TBN) (TBNNY:OTCMKTS) believes the Beetaloo Basin's low reservoir CO2 is an attractive source of supply for industry seeking to reduce greenhouse gas (GHG) emissions. This includes displacement of higher emitting sources of energy (i.e. coal-fired power and higher reservoir CO2 fields) and important feedstock for the manufacturing industry.
The Safeguard Mechanism reforms passed by the Federal Parliament are generally in line with recommendations made under the independent Scientific Inquiry into Hydraulic Fracturing of Onshore Unconventional Reservoirs in the Northern Territory (the Pepper Inquiry).
Specifically, Recommendation 9.8 of the Pepper Inquiry states that developing the Beetaloo should have "no net increase in the life cycle GHG emissions emitted in Australia".
In a decarbonising economy, low reservoir CO2 natural gas produced by a company with Net Zero Scope 1 and 2 targets should be prioritised for development.
Tamboran is already targeting Net Zero Scope 1 and 2 equity emissions from the commencement of commercial production, which will incorporate electrification of facilities and equipment, including Helmerich and Payne's (H&P) super-spec FlexRig(R) , which is enroute to Darwin.
Operations in Tamboran's Beetaloo Basin assets are continuing as planned, with the Amungee 2H (A2H) well in exploration permit EP 98 currently flowing back stimulation fluid.
The 30-day initial production rates from the A2H well are expected to be announced during the second quarter of 2023.
Tamboran Resources Limited Managing Director and CEO, Joel Riddle, said:
"The benefit of Beetaloo Basin gas is that low reservoir CO2 will provide an attractive source of energy in Australia's Northern Territory and East Coast markets as coal-fired power stations are decommissioned and gas-fired power is used to complement the uptake of renewable energy.
"Beetaloo gas also has the potential as a low CO2 source of gas supply for the manufacturing industry, which consumes approximately 45 per cent of gas sold to the domestic market and employs approximately 225,000 people in Australia. Gas is a key input in the manufacturing of fertilisers, glass, cement and bricks.
"As the existing East Coast gas supply falls from the Gippsland Basin and Cooper Basin, Beetaloo gas is expected to be a key supply source in meeting the anticipated shortfall forecast by the Australian Competition and Consumer Commission (ACCC) and Australian Energy Market Operator (AEMO)."
Recommendation 9.8 of the Pepper Inquiry
The Pepper Inquiry recommendation specifies that one way to fulfill Recommendation 9.8 is for the Federal Government to "strengthen existing policies and/or the introduction of new policies and initiatives to meet Australia's international obligations."
The recommendation goes on to say, "there are a variety of strategies that may either be expanded or new strategies be implemented to achieve this recommendation, including: early retirement of coal-burning powerplants; fitting of carbon capture and storage to gas or coal-fired power stations; higher emission standards for fossil fuel-burning vehicles; increased uptake of electric vehicles; international offsets; carbon credit offsets in agriculture and savannah burning; formal offset policies and markets; increased deployment of renewable energy; and reductions in deforestation."
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About Tamboran Resources Limited
Tamboran Resources Ltd (ASX:TBN) is a natural gas company that intends to play a constructive role in the global energy transition towards a lower carbon future by developing low CO2 unconventional natural gas resources in the Beetaloo Sub-basin within the Greater McArthur Basin in the Northern Territory of Australia. Tamboran's key assets are a 25% working interest in EP 161 and a 100% working interest in EP 136, EP 143 and EP(A) 197 which are located in the Beetaloo Sub-basin.
Tamboran Resources Limited