Key facts
- Australia's Beetaloo shale basin is set to begin gas production next month.
- Initial production is estimated at 37 million cubic meters.
- Tamboran Resources and Beetaloo Energy are the primary developers.
- The gas will initially supply the city of Darwin.
- The Beetaloo basin is estimated to hold 500 trillion cubic feet of gas.
- This development could increase Australia's LNG export capacity by 9%.
Australia's Beetaloo shale basin is poised to commence gas production next month, with initial output projected at 37 million cubic meters. Located in the Northern Territory, the basin is estimated to contain 500 trillion cubic feet of gas, drawing comparisons to the U.S. Marcellus shale play.
Tamboran Resources and Beetaloo Energy are spearheading this development, with the first gas destined for Darwin to meet its energy needs. Companies will closely monitor the depletion rates of the initial wells. Tamboran Resources' CEO, Todd Abbott, has previously expressed expectations of pumping over 1 billion cubic meters of gas daily, which could potentially boost Australia's liquefied natural gas export capacity by 9%.
The development of these shale reserves has been slower than conventional deposits, but the current timing is seen as opportune due to concerns about potential domestic gas shortages on Australia's east coast, exacerbated by heavy exports under long-term contracts. Japan, a major buyer of Australian gas, has also seen investment in the basin, with Inpex acquiring acreage earlier this year.
According to MST Marquee senior energy analyst Saul Kavonic, the project requires significant, long-term investment, which has only recently become available.