Gas supply in Australia was a hot topic even before the military action in Iran threw a spanner in the works of global gas supplies.
How we supply our own markets has been a topic of increasing interest for the past few years, with the Beetaloo Basin in the Northern Territory a closely watched area for potential new gas supplies.
Image source: Getty Images
Emerging producer
One of the companies that has been active in the region is Beetaloo Energy Australia Ltd (ASX: BTL), which has a big year ahead of it, at least according to the analyst team at Canaccord Genuity.
Beetaloo Energy is currently a modestly-sized company, valued at just $305.3 million, but the Canaccord team thinks there's potential for this value to grow quickly this year, given the milestones the company is looking to check off.
As Canaccord said in a note to its clients recently:
Beetaloo Energy is an Australian gas company focused on developing unconventional gas resources in the Northern Territory, Australia. It is a dominant player and acreage holder in the Beetaloo Basin – a basin with large, well understood gas potential that has historically been overlooked due to its isolation and above-ground risk. With regulatory risk now largely in the rearview mirror and clear market pull factors emerging, we expect change.
Beetaloo in December made a final investment decision to go ahead with its Carpentaria pilot project, where it is targeting first gas sales by the end of calendar year 2026.
That project has a 10-year gas sales agreement with the Northern Territory Government.
Canaccord said re the development:
If the pilot proves commercial, we expect majors to move quickly, with Betaloo's strategic foothold and first-mover advantage positioning it as a prime beneficiary of the basin's potential re-rating.
Other companies active in the Beetaloo Basin include Santos Ltd (ASX: STO) and Tamboran Resources Corporation (ASX: TBN).
Banner year for the company
The Canaccord analysts said further:
CY26/27 marks a key inflection point for Beetaloo as it enters the execution phase after years of appraising/de-risking. Near-term potential catalysts include: 1) recommencement of the C-5H flow test, targeting higher rates and potentially higher estimated ultimate recoveries; 2) installation and commissioning of the Carpentaria Gas Plant (equipment delivery expected 1HCY26, commissioning in Q3 CY26); and 3) commencement of pilot gas sales in 2HCY26, with a ramp to nameplate in CY27/28. In parallel, Santos is set to commence a $300m program in July, and Tamboran is targeting commissioning of its own pilot project in CY26.
The Canaccord team have a speculative buy recommendation on Beetaloo Energy shares, compared with just 25.5 cents currently. That would represent upside of 76.7% if achieved.
