Tamboran, Santos Partner on Darwin LNG Expansion Studies
(P&GJ) — Tamboran Resources and Santos have signed a non-binding Memorandum of Understanding (MOU) to conduct technical studies for a potential expansion of the Darwin LNG (DLNG) facility in Australia's Northern Territory.
The project, known as DLNG Train 2, could add up to 6 million tonnes per annum (MTPA) to the existing facility's 10 MTPA capacity at Middle Arm.
The agreement also includes collaboration on the EP 161 acreage in the Beetaloo Basin, where Tamboran holds a 25% stake and Santos operates with a 75% interest. The region spans approximately 300,000 acres of Mid Velkerri B Shale, with promising results from two Tanumbirini wells drilled and flow-tested in 2022.
Tamboran Managing Director and CEO Joel Riddle highlighted the potential of the Beetaloo Basin, saying, “Tamboran holds significant gas resources capable of supplying Northern Territory and Australia’s East Coast gas market for decades. With multiple commercialization pathways via LNG markets at Darwin and Gladstone and the East Coast domestic gas market, Tamboran is well positioned to assess opportunities to accelerate value for our shareholders.”
Riddle added that the partnership builds on over a decade of collaboration between Tamboran and Santos in the Beetaloo Basin. He noted that the shale in the deepest regions of Beetaloo East demonstrates qualities comparable to the Marcellus Basin in the United States.
The DLNG expansion would provide economic benefits, including royalties for the Northern Territory Government and Native Title Holders, while creating local jobs. Tamboran is also advancing its separate Northern Territory LNG (NTLNG) project at Middle Arm, which is undergoing pre-front-end engineering and design (pre-FEED) studies with Bechtel Corporation.
Both Tamboran and Santos remain committed to supplying natural gas to Australia’s domestic market and international LNG markets, supporting energy security and economic growth.
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