Santos said on Thursday the Darwin LNG JV, in which the company holds a 43.43 percent operating interest, has achieved financial close of new syndicated bank loan facilities.
The facilities comprise a $350 million 7-year, partially amortizing loan maturing in 2031 and a $450 million, 12-year partially amortizing loan maturing in 2036.
According to Santos, the facilities are senior-secured by Darwin LNG.
The shareholders in Darwin LNG, have granted security over their shares in that company.
Besides Santos, other partners are SK E&S, Inpex, Eni, Jera, and Tokyo Gas.
Santos said the facilities received “strong support” from existing and new syndicated banking relationships and the partners will use the proceeds to fund the DLNG life extension works.
Moreover, Santos CEO Kevin Gallagher said this is an “excellent result for Darwin LNG, showing strong support from our bank lenders, and demonstrating their recognition of LNG as a critical part of the energy transition and willingness to support the LNG industry.”
“The debt raised by the Darwin LNG joint venture is wholly consistent with our strategy of securing flexible, long-duration and competitively priced funding,” he 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,” Gallagher said.
Darwin LNG
Launched in 2006, the Darwin LNG plant has one train with a capacity of 3.7 mtpa.
Following cessation of LNG production from the Bayu-Undan field in late 2023, DLNG is undertaking life extension works.
The works aim to extend the plant’s design life and provide gas processing and marine loading services under a long-term contract to the Barossa JV.
The JV will supply feed gas from an offshore gas and light condensate project situated about 300km north of Darwin.
Earlier this year, Santos said the Barossa gas project was more than 70 percent complete and “on track” for first production in the third quarter of 2025.
Back in 2021, Santos took a final investment decision for its $3.6 billion Barossa project.
