Formentera Partners, its Australian operating company Daly Waters Energy (DWE), and joint venture partner Tamboran Resources have announced the first sales of natural gas from the Shenandoah South Pilot Project in Australia’s Beetaloo Basin. The milestone marks the first time natural gas from the Beetaloo Basin has been sold into the market. The gas will be supplied to the Northern Territory network and used to support energy needs in Darwin, the Territory’s capital and largest city.
Gas from the project is being transported through the Sturt Plateau Compression Facility (SPCF), which began commissioning activities in late August. The facility has a nameplate capacity of 48.5 million cubic feet of gas per day, equivalent to 50 terajoules per day.
Bryan Sheffield, Managing Partner of Formentera Partners, said the first gas sale marks an important achievement for the Beetaloo Basin and its development. “For years, the industry has discussed the potential of the Beetaloo. Today, that potential has been turned into a steady supply of natural gas for Territorians,” Mr Sheffield said. “Delivering first gas on time and on budget from a frontier basin is a significant accomplishment. It required close cooperation between our partners, contractors, government, Native Title Holders and the local community.”
Gas volumes are expected to increase gradually to the full contracted supply of 38.8 million cubic feet per day, or 40 terajoules per day, by the end of 2026. The supply is covered by a take-or-pay agreement with the Northern Territory Government for a period of up to 15 years.
Start-up and commissioning activities are also expected to be completed by the end of 2026. Formentera entered the Beetaloo Basin in 2022 and currently holds around 1.9 million net acres across the core area of the basin. The company said continued appraisal results have highlighted the scale and potential of the resource.
In March 2026, Formentera and DWE joined INPEX to support the next phase of development in the basin. The companies later announced plans to bring a Helmerich & Payne FlexRig from the United States. The rig is expected to arrive in Australia during the second quarter of 2027.
DWE is also expected to transition from joint venture partner to operator during the next stage of development, subject to approval of its retention licence applications. The first gas sale marks an important step for the Beetaloo Basin as it moves from appraisal towards larger-scale development. The partners plan to expand production to support the Northern Territory and, over time, explore opportunities to supply wider domestic and international markets, including LNG customers.
Formentera Partners is a global exploration and production company with operations across approximately three million gross acres worldwide. Daly Waters Energy, backed by Formentera, is focused on developing natural gas resources in Australia’s Northern Territory.
