Australian Energy Giants Santos and Tamboran Resources Corporation Collaborate on LNG Project Expansion
Australia’s energy giant Santos has formed a strategic partnership with Tamboran Resources Corporation to explore the potential expansion of a liquefied natural gas (LNG) project in Darwin. The collaboration aims to increase gas supply to both the domestic market in Australia and the international LNG market.
Through a non-binding memorandum of understanding (MoU), Santos and Tamboran will conduct technical studies for a potential expansion of the Darwin LNG (DLNG) Train 2 and collaborate on the EP 161 acreage in the Beetaloo Basin.
The studies will assess options for supplying natural gas to an expansion train at the existing DLNG facility in Darwin. The DLNG facility, located at Wickham Point on Darwin Harbour in the Northern Territory, has been operational since 2006 and is undergoing life extension works to support the Barossa joint venture.
Expansion Opportunities
The DLNG project was originally approved for a nominal capacity of 10 million tons of LNG per annum, with the expansion opportunity potentially adding an additional 6 million tons per annum. The recent financial close of new syndicated bank loan facilities totaling $800 million has paved the way for further investments in the project.
The Barossa gas project, which is 88.3% complete, is on track for first production in the third quarter of 2025. The project includes the deployment of the FPSO Opal, subsea production wells, and a gas export pipeline to extend the facility’s life for another 20 years.
Future Development Plans
Kevin Gallagher, Santos’ Managing Director and Chief Executive Officer, emphasized the company’s commitment to delivering strong, stable long-term production through projects like Barossa and Pikka. He also mentioned other high-quality development options in the company’s portfolio for future expansion.
Furthermore, Tamboran and Santos are joint venture partners in the EP 161 acreage, holding significant gas resources in the Beetaloo Basin. Joel Riddle, Tamboran Resources Corporation’s Managing Director and CEO, expressed the firm’s dedication to exploring commercialization options for the development of DLNG Train 2 using natural gas from the Beetaloo Basin.
Riddle highlighted Tamboran’s extensive prospective gas resources in the region, capable of supplying gas to both the Northern Territory and Australia’s East Coast markets. The collaboration between Tamboran and Santos aims to unlock the potential of the Beetaloo Basin and contribute to the expansion of DLNG in Darwin.
Conclusion
The partnership between Santos and Tamboran signifies a significant step towards enhancing Australia’s LNG industry and meeting the growing demand for natural gas in both domestic and international markets. With a focus on sustainable development and value creation, the collaboration holds promise for the future of the LNG sector in Australia.