SYDNEY, AUSTRALIA: Empire Energy Group Limited (ASX: EEG) has announced the acquisition of the Rosalind Park Gas Plant (RPGP) from AGL Limited (ASX: AGL) for $2.5 million in cash.

The RPGP is a gas processing facility that can handle up to 42 TJ / day of natural gas from the Beetaloo Sub-basin in the Northern Territory.

The RPGP was previously used by AGL for the Camden Gas Project in New South Wales, which was decommissioned in August 2023. Empire has transported the RPGP to storage facilities in Roma, Queensland, where it will be refurbished before being installed at the Carpentaria Pilot Project in 2024.

Empire is targeting gas sales to commence in 2025, subject to regulatory approvals and final investment decision in the coming months. The company expects to generate material cash flow and reduce emissions from flaring test gas.

Managing Director Empire Energy Alex Underwood said, “”This is a material development for Empire, its shareholders and all stakeholders involved in the development of the Beetaloo Sub-basin, and the substantial economic benefits and energy security that Empire’s Beetaloo project can provide for all Australians.

The Rosalind Park Gas Plant has been very well managed by AGL during its time processing gas for supply into the Sydney market and meets the specifications Empire requires for processing its low CO2 Beetaloo gas for supply into NT market and Australian East Coast markets from the EP187 Carpentaria Pilot Project, and in future larger scale development scenarios.

This comes at a critical time for energy security for the NT market, given that existing sources of supply continue to decline.

Success at the Carpentaria Pilot Project would achieve two critical goals for Empire and its shareholders: one, the generation of material cash flow to support our ongoing growth, and two, demonstration of the long-term deliverability of development wells in the Beetaloo Basin, all while reducing the emissions that would otherwise result from flaring test gas.

The Empire team continues its hard work progressing towards a final investment decision for the pilot project, and is targeting the field installation of the RPGP, drilling of development wells and connection of the project to the McArthur River Pipeline in next year’s dry season, which would result in gas sales commencing in 2025.”

APA Group and Empire Energy sign initial agreement to develop Beetaloo gas project