Santos JV ties up $1.2 billion for Darwin LNG life extension
Make us a preferred source
Make us a preferred source on Google
The news: Oil and gas producer Santos says its Darwin liquefied natural gas joint venture has tied up debt financing for works to extend the life of the LNG plant.
The numbers: The new syndicated bank loan facilities comprise a USD350 million ($521 million) seven-year, partially amortising loan maturing in 2031 and a USD450 million, 12-year partially amortising loan maturing in 2036.
Santos owns a 43.43% stake in Darwin LNG, which also includes other oil and gas majors SK E&S, INPEX, ENI, and Japan’s JERA and Tokyo Gas. Shares in the company were up 0.6% at $7.16 in early trading on the ASX.
The context: The Darwin plant 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, works have been planned to extend the design life of the plant so that it can provide gas processing and marine loading services to Santos’ Barossa joint venture.
Santos Managing Director Kevin Gallagher said the debt facilities means Darwin LNG is well-funded to complete life extension works scheduled to start in mid-2025, and could also consider “future expansion of this important infrastructure, including through the potential provision of third-party carbon capture services in Darwin”.
The source: ASX
