Leading Australian energy infrastructure owner/operator APA Group (ASX: APA) has signed an agreement for the first of a number of pipeline projects it is assessing to transport gas out of the Beetaloo sub-basin.

Located 500 kilometres south-east of Darwin and covering 28,000 sq km, Beetaloo is considered one of the largest undeveloped basins in the world with an estimated 500 trillion cubic feet of gas.

The SPP is the first of a number of pipeline projects that APA is assessing to transport gas out of the Beetaloo Basin, incentivising ongoing exploration activities in the remote region.

Major gas connection

In a major milestone for energy developments in the Northern Territory, APA has executed a number of agreements with Tamboran Resources (ASX: TBN) and Daly Waters Energy for the Sturt Plateau Pipeline (SPP) connection.

APA will build, own and operate the SPP to connect Tamboran Resources’ operated Shenandoah South pilot project to the Amadeus gas pipeline in the Northern Territory.

The pipeline will be approximately 37 kilometres in length, with construction targeted for completion in early 2026 and total construction costs estimated at around $66.5 million.

Growth opportunities

Chief executive officer Adam Watson said the project highlights both ongoing growth opportunities across APA’s gas transmission network and its critical role in supporting energy security and transition.

“Approximately 88% of electricity generated in the NT comes from gas-fired power generation and around 60% of the NT’s gas supply from 2026 is forecast to come from Tamboran’s first pilot gas development,” Mr Watson said.

“So this new infrastructure is critical to ensuring gas from the Beetaloo will be available to power the NT as existing gas supply sources deplete.”

Tamboran’s proposed Beetaloo Basin development strategy is to grow gas production to 2 billion cubic feet per day as early as 2030 to supply Australia’s east coast, the NT and Asia-Pacific markets.