**Finance Secured for Darwin LNG Life Extension and Potential Future Expansion**
In a significant development for the Australian oil and gas industry, Santos and its partners in the Darwin LNG joint venture have successfully secured new syndicated bank loan facilities totaling $800 million. This financing will enable the completion of the life extension works scheduled for mid-2025 at the Darwin LNG facility in the Northern Territory, Australia.
The CEO of Santos, Kevin Gallagher, highlighted the strategic importance of these funds, stating, “With these facilities in place, Darwin LNG is well-funded to complete the life extension works and positions the facility to consider future expansion, including through the potential provision of third-party carbon capture services in Darwin.”
Since its commissioning in 2006, Darwin LNG has been a crucial player in the global LNG market, processing and exporting liquefied natural gas to overseas markets. Following the cessation of LNG production from the Bayu-Undan field in late 2023, a program is underway to extend the design life of the plant and provide gas processing and marine loading services to the Barossa Joint Venture. The Barossa Joint Venture will supply feed gas from an offshore gas and light condensate development project situated approximately 300 kilometers north of Darwin in the Timor Sea.
The Darwingly LN pipeline and liquefaction projects are led by Santos with a 43.4% stake, followed by SK (25%), Inpex (11.4%), Eni (11%), JERA (6.13%), and Tokyo Gas (3.07%). The new financing arrangements consist of a $350 million, 7-year partially amortizing loan maturing in 2031, and a $450 million, 12-year partially amortizing loan maturing in 2036. These senior-secured facilities received strong support from both existing and new banking relationships, reflecting the sector’s recognition of LNG as a critical component of the energy transition.
Darwin LNG’s life extension works aim to prepare the facility for the next two decades, with the inclusion of deploying a floating production storage and offloading (FPSO) vessel upstream at the Barossa oil and gas field. This project is expected to enhance the plant’s operational efficiency and longevity, securing a vital role in the regional energy sector.
The Darwingly LN terminal has been a pivotal asset in Australia’s energy landscape since its inception, consistently exporting an average of one cargo per week to Tokyo Electric and Tokyo Gas customers. This ongoing commitment to infrastructure development align