Santos and its partners have reached financial close of new syndicated bank loan facilities totalling $800m for the life extension works of the Darwin liquified natural gas (LNG) facility in Australia.
The loan facilities include a $350m seven-year partially amortising loan maturing in 2031, and a $450m 12-year partially amortising loan maturing in 2036. These are senior secured by the Darwin LNG joint venture (JV), with shareholders, including Santos, providing security over their shares in the company.
Santos operates the JV and holds an interest of 43.43%.
Located in the Northern Territory on the Timor Sea, the Darwin LNG project involves gas development and production from the Bayu-Undan gas field along with the pipeline transport and liquefaction of the gas. The Darwin project started operations in 2006.
The LNG production from the Bayu-Undan field was halted in late 2023. Since then, life extension works have been undertaken at the Darwin LNG project.
The current works aim to extend the plant’s design life and facilitate gas processing and marine loading services for the Barossa JV. Barossa will supply feed gas from its offshore gas and light condensate project, located about 300km north of Darwin.
Santos CEO Kevin Gallagher said: “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.”
The financing received strong backing from both existing and new banking partners.
Last month, the Bayu-Undan JV participants and TIMOR GAP executed a sale and purchase deed (SPD) to transfer a 16% stake in the Bayu-Undan project to TIMOR GAP.
