Santos and Tamboran Resources Collaborate on Darwin LNG Expansion
Introduction to the Collaboration
The collaboration between Santos and Tamboran Resources Corporation is focused on evaluating the potential expansion of the Darwin LNG project. This includes adding a second liquefaction train to the existing facility at Middle Arm, located on Darwin Harbour. The primary goal is to supply more natural gas to both the Australian domestic market and the international LNG scene, addressing the growing demand in the Asia Pacific region.
In January 2025, Santos and Tamboran signed a non-binding Memorandum of Understanding (MOU) to conduct technical studies for the potential expansion of the Darwin LNG project. This MOU marks a significant step forward in their strategic partnership, outlining the initial steps towards a potential Train 2 expansion. The collaboration aims to add up to 6 million tonnes per annum (MTPA) of capacity to the current Darwin LNG (DLNG) operations, enhancing the project’s overall capacity and efficiency. This expansion is expected to significantly contribute to the Australian domestic market and the global LNG supply chain Tamboran and Santos execute MOU to progress studies for Darwin LNG expansion.
The partnership is built on a decade-long collaboration in the EP 161 acreage, which hosts the Beetaloo East area. This long-standing relationship has enabled both companies to leverage their combined expertise and resources to explore the potential for a Train 2 expansion at Darwin LNG. The studies will focus on various technical and economic aspects, including the feasibility of adding a second liquefaction train, potential gas supply sources, and the overall economic viability of the project.
Santos and Tamboran are committed to ensuring that the expansion is both technically feasible and economically beneficial. By adding a second liquefaction train, the project can better meet the increasing demand for natural gas, contributing to energy security and economic growth in Australia.
In summary, the collaboration between Santos and Tamboran on the Darwin LNG project expansion is a strategic initiative aimed at meeting the growing demand for natural gas in the Australian market and the global LNG supply chain. The technical studies and feasibility assessments will provide a comprehensive understanding of the project’s potential, ensuring that the expansion is both technically viable and economically beneficial.
Technical Studies and Feasibility
The collaboration involves comprehensive technical studies to assess the feasibility of adding a second liquefaction train to the existing Darwin LNG facility. These studies will evaluate various options for supplying natural gas to the potential expansion train, including sources from the Beetaloo Basin. The goal is to ensure that the expansion is technically viable and economically beneficial.
The technical studies will encompass a detailed analysis of the existing infrastructure, including the liquefaction trains, pipelines, and storage facilities. This analysis will identify any necessary upgrades or modifications to accommodate the additional capacity. Additionally, the studies will assess the feasibility of integrating natural gas supplies from the Beetaloo Basin, a significant gas field in the region. This assessment will include evaluating potential gas flow rates, pressure requirements, and the impact on existing operations.
The potential expansion of Darwin LNG’s second train is part of a broader strategy to enhance Australia’s liquefied natural gas (LNG) export capacity. This expansion is expected to add up to 6 million tonnes per annum (MTPA) of capacity to the current Darwin LNG (DLNG) facility, significantly boosting Australia’s LNG export capabilities.
In summary, the technical studies and feasibility assessment for the Darwin LNG expansion project represent a significant milestone in the collaboration between Tamboran Resources Corporation and Santos. By evaluating various options and ensuring technical viability, the project aims to enhance Australia’s LNG export capabilities and contribute to the region’s economic growth Tamboran and Santos execute MOU to progress studies for Darwin LNG expansion.
Project Details and Facilities
The existing Darwin LNG facility is situated at Middle Arm, a single train liquefaction and storage facility on Darwin Harbour. The facility was commissioned in 2006 and ceased LNG production in late 2023, receiving gas from the Bayu-Undan field in the Timor Sea. The expansion project aims to revitalize this facility by adding a second liquefaction train, which will enhance its capacity and efficiency.
The project is part of a broader collaboration between Santos and Tamboran, with a non-binding Memorandum of Understanding (MOU) signed in January 2025 to undertake technical studies for the expansion. This partnership is crucial for the success of the project, as it leverages the extensive experience and resources of both companies in the LNG industry. The expansion will add up to 6 million tonnes per annum (MTPA) of capacity to the current Darwin LNG (DLNG) facility, significantly increasing its overall output and making it one of the largest LNG facilities in Australia.
The new train will be supplied with natural gas from the Beetaloo Basin, which is part of the EP 161 acreage that Santos and Tamboran have been managing for over a decade. This strategic location will ensure a reliable and consistent supply of natural gas for the expanded facility. The project is expected to create around 600 jobs during construction and 350 ongoing jobs in Darwin over the following 20 years, contributing positively to the local economy.
The expansion is part of a larger effort to diversify Australia’s energy portfolio and reduce its reliance on imports. It is also aligned with the Australian Government’s goal of increasing domestic LNG production to meet growing domestic demand and support the transition to a low-carbon economy. The Darwin LNG expansion project is a significant step towards achieving these objectives, demonstrating Australia’s commitment to sustainable and responsible energy development Tamboran and Santos execute MOU to progress studies for Darwin LNG expansion.
Strategic Importance
The Darwin LNG project expansion is part of Santos’ broader strategy to diversify its gas supply and meet growing demand, particularly in the Asia Pacific region. Santos operates the existing DLNG project with a 43.4% working interest and is committed to delivering the Barossa and Pikka projects. The expansion aligns with Santos’ strategic position to supply lower cost and lower carbon LNG to the region.
This strategic importance is further underscored by the collaboration between Santos and Tamboran, which has signed a non-binding Memorandum of Understanding (MOU) to undertake technical studies for the potential expansion. This partnership is crucial as it will enable the project to leverage Tamboran’s expertise in gas supply and infrastructure development, enhancing the overall feasibility and efficiency of the expansion. The collaboration aims to add up to 6 million tonnes per annum (MTPA) of capacity to the current Darwin LNG (DLNG) facility, further solidifying Santos’ position as a key player in the global LNG market.
The strategic importance of this expansion cannot be overstated, as it positions Santos to meet the increasing demand for natural gas in the Asia Pacific region while reducing carbon emissions through the use of lower carbon LNG Tamboran and Santos execute MOU to progress studies for Darwin LNG expansion.
Financial Aspects
The Darwin LNG joint venture, a collaboration between Santos and Tamboran, has secured new syndicated bank loan facilities totaling $800 million. This funding is crucial for the expansion project, which involves a $600 million investment in the DLNG life extension and pipeline tie-in projects. The project includes the construction of a floating production storage and offloading (FPSO) unit and subsea infrastructure, further solidifying its financial viability.
The partnership between Santos and Tamboran is a significant step forward in the development of the Darwin LNG project, with both companies committed to supplying natural gas from the Beetaloo Basin into both the Australian domestic gas and international markets. The project’s financial aspects are robust, with a $600 million investment in the DLNG life extension and pipeline tie-in projects, and the construction of a floating production storage and offloading (FPSO) unit and subsea infrastructure. The syndicated bank loan facilities totaling $800 million further solidify the project’s financial viability Gasworld.
Conclusion
The collaboration between Santos and Tamboran is set to create significant value for shareholders, generate jobs, and contribute to the Northern Territory Government’s royalties. The expansion of the Darwin LNG project is part of a broader strategy to diversify gas supply and meet growing demand, particularly in the Asia Pacific region.
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