Beetaloo Basin Delivers First Natural Gas Sales to Darwin

Formentera Partners, through its Australian operating company Daly Waters Energy (DWE), and joint-venture partner Tamboran Resources have achieved a major milestone with the first commercial sale of natural gas from Australia’s Beetaloo Basin. Gas produced through the Shenandoah South Pilot Project is now being supplied to the Northern Territory gas network, marking the first-ever natural gas molecules sold from the basin.

The initial production will help supply Darwin, the Northern Territory’s capital and largest city. The gas is transported through the Sturt Plateau Compression Facility (SPCF), which began commissioning activities in late August. The facility has a nameplate capacity of approximately 48.5 million cubic feet per day (MMcf/d), equivalent to 50 terajoules per day (TJ/d).

The milestone represents an important transition for the Beetaloo Basin, which has spent years in the appraisal and resource-development phase. Formentera said the project was delivered on schedule and within budget, highlighting cooperation among its partners, contractors, government authorities, Native Title Holders and local communities.

Production volumes are expected to increase progressively, reaching the full contracted volume of 38.8 MMcf/d, or 40 TJ/d, by the end of 2026. The supply is covered by a take-or-pay agreement with the Northern Territory Government that can remain in place for as long as 15 years. Start-up activities are also expected to be completed by the end of 2026.

Formentera entered the Beetaloo Basin in 2022 and has since accumulated approximately 1.9 million net acres across the core of the region, establishing one of the basin’s largest acreage positions. The company believes the basin’s geological characteristics compare favorably with major U.S. shale formations, including Pennsylvania’s Marcellus Shale.

Continued appraisal success has strengthened expectations that the Beetaloo could develop into a large, long-life natural gas resource. Beyond meeting Northern Territory demand, the basin could eventually supply Australia’s East Coast gas market and support LNG exports.

The development received another boost in March 2026 when Formentera and DWE partnered with INPEX to advance large-scale development. In August, the partners also announced plans to bring a Helmerich & Payne FlexRig from the United States to the basin. The rig is expected to arrive in the second quarter of 2027 and would become the second H&P rig operating in the Beetaloo.

DWE is also expected to transition from a project partner to operator during the next development phase. The start of commercial gas sales therefore represents a significant inflection point, demonstrating that the Beetaloo is progressing from exploration and appraisal toward sustained production, infrastructure expansion and long-term investment.

Chemical Commodity Prices

The first commercial gas sales from the Beetaloo Basin are positive for natural gas supply security in Australia, particularly for the Northern Territory. As production ramps toward 40 TJ/d, additional domestic gas availability could reduce regional supply tightness and limit upward price pressure on natural gas. For chemical commodities tracked by ChemAnalyst, the impact is more indirect. Greater gas availability could support more stable feedstock and energy costs for gas-intensive chemical manufacturing, potentially improving margins for products such as ammonia, methanol and hydrogen where natural gas is an important feedstock. However, the initial production scale is unlikely to materially influence global chemical prices in the near term.