Santos Secures $800M Loan for Darwin LNG Life Extension Ops

Darwin LNG facility (Credit: Santos)

Australian oil and gas major Santos has secured an $800 million loan to finance the life extension works on of the Darwin LNG project in Australia.

Darwin LNG has processed LNG for sale into overseas markets since it was commissioned in 2006.

Following cessation of LNG production from the Bayu-Undan field in late 2023, the Darwin LNG joint venture, where Santos holds 43.43% interest, is undertaking life extension works to extend the design life of the plant and to provide gas processing and marine loading services under long-term contract to the Barossa Joint Venture, which will supply feed gas from an offshore gas and light condensate project situated around 300km north of Darwin.

The funding secured by the joint venture comprise a $350 million 7-year, partially amortizing loan maturing in 2031 and a $450 million, 12-year partially amortizing loan maturing in 2036.

The facilities received strong support from existing and new syndicated banking relationships and the proceeds will be used to fund the Darwin LNG life extension works.

“The debt raised by the Darwin LNG joint venture is wholly consistent with our strategy of securing flexible, long-duration and competitively priced funding.”

“With these facilities in place, Darwin LNG is well-funded to complete the life extension works scheduled for mid-2025 and it positions Darwin LNG to consider future expansion of this important infrastructure, including through the potential provision of third-party carbon capture services in Darwin,” said Kevin Gallagher, Santos Chief Executive Officer.