Santos has announced that the Darwin LNG joint venture, in which it holds a 43.43 percent interest, has successfully achieved financial close on new syndicated bank loan facilities totalling US$800 million. The joint venture, operated by Santos, secured strong support from both existing and new banking partners, demonstrating significant confidence in LNG’s role within the energy transition.
The new financing includes a US$350 million, 7-year partially amortising loan maturing in 2031, and a US$450 million, 12-year partially amortising loan maturing in 2036. Both loans are senior-secured by Darwin LNG Pty Ltd, with shareholders, including Santos, granting security over their shares in the company. The funds will be used to finance the life extension works for the Darwin LNG plant, which are scheduled for completion by mid-2025.
Kevin Gallagher, chief executive officer of Santos, commented on the positive outcome, stating, “This is an excellent result for Darwin LNG, showcasing the strong support from our bank lenders. It also highlights their recognition of LNG as a critical component of the energy transition and their willingness to support the LNG industry.”
Gallagher further noted that the debt raised aligns with Santos’ strategy of securing flexible, long-term, and competitively priced funding. He added that the new facilities position Darwin LNG well to consider future infrastructure expansion, including the potential for offering third-party carbon capture services in Darwin.
Since its commissioning in 2006, Darwin LNG has been processing LNG for export markets. After the cessation of LNG production from the Bayu-Undan field in late 2023, Darwin LNG has undertaken life extension works to prolong the plant’s design life. Once completed, the facility will provide gas processing and marine loading services under a long-term contract to the Barossa Joint Venture, which will supply gas from an offshore project located approximately 300 kilometres north of Darwin.
For more information visit www.santos.com
