Tamboran Resources Corporation (NYSE: TBN) has commenced gas commissioning of the Sturt Plateau Compression Facility (SPCF) in Australia's Northern Territory, using gas from wells on the Shenandoah South 2 pad.

The SPCF is owned by the SPCF Trust, a 50/50 joint venture between Tamboran and Daly Waters Infrastructure, LP. The facility has a processing capacity of 50 terajoules per day (TJ/d), with 40 TJ/d contracted to the Northern Territory Government under a long-term, take-or-pay gas sales agreement of up to 14 years.

During commissioning, gas will be sold to the Northern Territory Government at a discounted rate, consistent with industry practice. All five wells on the Shenandoah South 2 pad have been drilled, stimulated, and tied back to the facility.

The construction project is reported to be on schedule and within its P50 gross budget of A$141 million (approximately US$99 million).

Chief Executive Officer Todd Abbott said in a statement that the commissioning milestone positions the company to deliver first gas sales of up to 40 TJ/d to the Northern Territory Government under its long-term gas sales agreement.