Tamboran, Santos sign MOU to further study Darwin LNG expansion

Tamboran Resources Corp. and Santos Ltd. have signed a non-binding memorandum of understanding (MoU) to explore commercialization options for potential expansion of the Santos-operated (43.4%) Darwin LNG plant at Middle Arm. 

The agreement will allow technical studies of the potential Darwin LNG (DLNG) Train 2 expansion as well as collaborative work on the jointly owned EP 161 acreage (Santos 75% operator, Tamboran 25%) in the Beetaloo basin, Tamboran said in a release Jan. 22.

Tamboran managing director and chief executive officer Joel Riddle said the MoU “aims to explore commercialization options for the development of DLNG Train 2 utilizing natural gas supplied from the extensive prospective gas resources within the Beetaloo basin.” 

DLNG was approved to a nominal 10 million tonnes/year (tpy) of LNG, with this expansion opportunity up to 6 million tpy. In October 2024, the Darwin LNG joint venture closed new syndicated bank loan facilities totaling $800 million, the proceeds of which are to be used to fund the DLNG life extension works.

“Tamboran and Santos have been partners in the EP 161 acreage, which hosts the Beetaloo East area, for more than a decade,” he said, noting that the company believes “the shale within the deepest Beetaloo East region is on par with some of the high-quality shale qualities we have successfully unlocked in the Shenandoah South area in the Beetaloo West.”

EP 161 holds about 300,000 acres of Mid Velkerri B Shale at depths below 8,850 ft (2,700 m). The region has demonstrated Marcellus basin-type decline curves from two Tanumbirini wells that were drilled and flow tested in 2022, the company said. 

Tamboran said it remains committed to progressing the development of the proposed NTLNG project at Middle Arm, which is currently undergoing pre-FEED studies with Bechtel Corp. (OGJ Online, June 9, 2023).