Santos announces financing of Darwin LNG life extension works

Santos has announced that the Darwin LNG joint venture, which it operates and holds a 43.43% stake in, has successfully secured financial closure on new syndicated bank loan facilities totaling $800 million.

The funding includes a $350 million loan with a seven-year term maturing in 2031 and a $450 million loan with a twelve-year term maturing in 2036. Both loans are senior-secured by Darwin LNG Pty Ltd, and the shareholders, including Santos, have provided security over their shares in the company.

The loans received strong backing from both existing and new banking partners, with the proceeds designated for funding life extension works at Darwin LNG.

Santos' CEO, Kevin Gallagher, highlighted that this achievement reflects robust support from their banking partners and acknowledges LNG's role in the energy transition, as well as their commitment to the LNG sector. He noted that the funding aligns with Santos’ strategy to secure flexible, long-term, and competitively priced financing.

With these facilities in place, Darwin LNG is well-positioned to complete the life extension works scheduled for mid-2025 and is exploring opportunities for future expansion, which may include offering third-party carbon capture services in Darwin. Since its commissioning in 2006, Darwin LNG has successfully processed LNG for export. Following the end of LNG production from the Bayu-Undan field in late 2023, the facility is now undertaking life extension projects to prolong its operational lifespan and to provide gas processing and marine loading services under a long-term contract with the Barossa Joint Venture, which will supply feed gas from an offshore gas and light condensate project approximately 300 km north of Darwin.

Santos' 43.43% interest in Darwin LNG Pty Ltd is recognized as an equity-accounted investment in an associate.