Australia’s energy landscape is evolving and so is the way projects collaborate across sectors. One of the most strategic partnerships to emerge in 2025 is the non-binding Letter of Intent (LOI) between Tamboran Resources and Arafura Rare Earths Limited.
This agreement links natural gas production in the Beetaloo Basin with the energy-intensive processing needs of Arafura’s Nolans rare earths project near Alice Springs, a move that may reshape how domestic gas supports critical mineral production and long-term economic growth.
The Agreement at a Glance
In March 2025, Tamboran Resources announced a non-binding LOI to supply gas to Arafura’s Nolans Project, a major rare earths development approximately 135 km north of Alice Springs.
Key Details:
- Volume: Undisclosed, but described as a “material” contribution to Nolans’ long-term energy needs
- Location: Beetaloo Basin (gas origin) → Nolans Project (end user)
- Infrastructure: Will likely require connection to Tamboran’s Northern Territory pipeline network
- Timing: In alignment with the ramp-up of both Tamboran’s gas development and Arafura’s processing operations
Why This Matters: Strategic Alignment Across Sectors
The deal represents more than just a commercial transaction. It highlights three major trends shaping Australia’s energy and resources industries in 2025:
1. Domestic Gas for Domestic Industry
Rather than shipping all gas offshore as LNG, Tamboran is positioning itself as a partner for onshore manufacturing and critical minerals processing, supporting the federal government’s ambitions to build sovereign capability in high-value supply chains.
2. Energy Security for Critical Mineral Processing
Rare earth elements require intense energy input for processing and reliable, competitively priced gas is essential. By aligning with Tamboran, Arafura can hedge against future energy market volatility while ensuring stable input for a strategically important product.
3. Pipeline Infrastructure as a Growth Lever
Both companies benefit from shared infrastructure investments in the Northern Territory. A robust pipeline network not only supports this agreement but sets the stage for broader industrial development in the region.
The Regional Impact: Northern Territory in Focus
This deal has clear economic implications for the Northern Territory, particularly Central Australia.
Economic Development:
- Job Creation: Both the Beetaloo development and the Nolans processing site are expected to create hundreds of direct and indirect jobs.
- Skills Demand: Local demand is rising for process operators, HSE professionals, logistics coordinators and pipeline technicians.
- Indigenous Engagement: Both companies have publicly committed to working with Traditional Owners. This could become a model for future partnerships in the region.
Infrastructure Growth:
- Expect to see increased investment in roads, water and gas infrastructure as a result of these and related projects.
Implications for the Energy Workforce
At Enxgy, we’re seeing clear talent trends emerge from agreements like this one.
Skills in Demand:
- Gas field operations: drilling, completion, compression
- Midstream: pipeline construction, maintenance, control room operators
- Process Engineering: gas-to-power, gas dehydration, compression systems
- Industrial Power: electrical/instrumentation techs with gas turbine experience
- Environmental & Approvals: growing emphasis on regulatory compliance and Indigenous land access
Who Should Pay Attention:
- FIFO workers in WA and QLD looking to transition into NT-based projects
- Gas professionals seeking longer-term, domestic-focused roles
- Engineering graduates entering the energy/resources field
Energy Transition… on Australia’s Terms
This partnership also signals a more realistic version of the energy transition. Rather than a wholesale shift from gas to renewables, we’re seeing gas positioned as a reliable enabler of value-added industries like rare earth processing, which itself supports clean energy tech globally.
It’s an approach rooted in:
- Domestic economic development
- Energy independence
- Strategic resource production (for defense, tech, clean energy)
What’s Next?
Both Tamboran and Arafura still face execution milestones:
- Tamboran must continue progressing its EP136 project and finalise gas transport agreements
- Arafura must complete construction and commissioning of the Nolans hydrometallurgical plant
However, the direction is clear: long-term, integrated resource partnerships are back on the table, and the Northern Territory is quickly becoming a hotbed of industrial collaboration.
Key Takeaways for Industry Professionals
- Gas isn’t just for export anymore — it’s enabling downstream growth right here in Australia.
- Territory-based projects are ramping up — and workforce demand will follow.
- Strategic partnerships like Tamboran x Arafura show what Australia’s next energy wave could look like: connected, domestic-focused and cross-sectoral.
Enxgy’s Role
We’re actively engaged with clients operating in and around the Beetaloo Basin and Central Australia, helping them secure the right people for gas operations, infrastructure development and downstream processing support.
If you’re looking to move into Territory-based work, now’s the time to get your foot in the door.
