(WO) - INPEX and Formentera Partners have formed a joint venture to accelerate development of shale gas resources in Australia’s Beetaloo basin, marking a step forward in efforts to scale domestic supply and support future LNG exports.
Under the agreement, INPEX will acquire an initial position in a core acreage block within Formentera’s broader 1.9-million-acre holding in the Northern Territory through a staged earn-in valued at up to $208 million. The deal includes options to expand its stake, with additional investment tied to drilling and development activity.
The joint venture, operated by Formentera subsidiary Daly Waters Energy, will apply U.S. shale drilling and completion techniques to advance a basin long recognized for its resource potential but challenged by technical and infrastructure constraints. Recent appraisal activity has confirmed multi-Tcf gas potential across key development areas.
Initial development will focus on supplying domestic gas, supported by a 40 MMcf/d agreement with the Northern Territory, while longer-term plans include expanding LNG exports. INPEX is evaluating additional capacity at its Ichthys LNG facility in Darwin, which could be partially supplied by Beetaloo production.
“INPEX will participate in proving the potential to develop natural gas from the Beetaloo Sub-basin for the Northern Territory in the near term,” said Tetsu Murayama, INPEX managing director for Australia.
The project is expected to move from appraisal into infrastructure buildout, including gathering systems and processing capacity, positioning the Beetaloo as a potential long-term supply source for Australia’s east coast and regional export markets.
The partnership also includes Tamboran Resources, which has been active in the basin alongside Formentera since 2022.