Leading Australian energy infrastructure business, APA Group (ASX: APA), today signed an initial agreement with Tamboran Resources (ASX: TBN) to progress the connection of Tamboran's Beetaloo Basin to APA's gas transmission assets.

Under the initial agreement, APA will commence early land access and approvals, and pre-engineering studies that are necessary to develop a gas pipeline connecting Tamboran's proposed initial development at Shenandoah South to APA's Amadeus Gas Pipeline in the Northern Territory.

APA will also commence preliminary early land access and approvals and pre-engineering studies with the objective of connecting the Beetaloo Basin to APA's existing East Coast Grid with a new pipeline that connects to the South West Queensland Pipeline.

It is planned to convert this initial agreement into a longer-form agreement in the coming months. This would then see APA spending up to $10 million on completing preliminary studies and approvals over the next 12- months. The proposed project is subject to further negotiations and approvals between APA and Tamboran.

As part of the proposed longer-form arrangements, APA will also work alongside Tamboran and the Northern Territory Government to potentially connect the Beetaloo Basin to Darwin and Tamboran's proposed Northern Territory LNG development.

"As we begin these initial studies and approvals, we are committed to working closely with landholders, communities, First Nations stakeholders, councils and governments. As an Australian business we are firmly focused on working alongside our stakeholders to strengthen communities through the delivery of infrastructure solutions in a reliable, affordable and low emissions way," APA CEO and Managing Director Adam Watson said.

"In addition to this commitment, the measures developed and implemented through the Pepper Report will ensure gas can be delivered safely, responsibly and sustainably.

"We believe gas is essential to fast-track renewables and deliver the most secure, reliable, affordable and lowemissions pathway to the decarbonisation of Australia's energy system.

"That's why it's so important that as a nation, we continue to invest in domestic gas to successfully facilitate the energy transition. Unlocking the Beetaloo Basin will be key to supporting this as coal is replaced with renewable generation and backed with gas firming."