The companies are already partners in the Betaloo’s EP 161 permit, with Santos as operator holding 75% interest and Tamboran 25%. (Source: Shutterstock)
Tamboran Resources Corp. and Santos Ltd. are considering technical studies that could lead to a Train 2 expansion at Darwin LNG as well as collaborative work on Australia’s Beetaloo Basin.
Darwin was approved with a 10 million tonnes per annum (mtpa) capacity. The expansion would add up to 6 mtpa more LNG throughput.
The companies signed a nonbinding memorandum of understanding (MOU) with the goal of evaluating options for supplying natural gas to a potential LNG train expansion at Darwin on the Middle Arm coastal peninsula, Tamboran said Jan. 22. Santos is the operator of the existing Darwin LNG project, with a 43.4% working interest.
Joel Riddle, Tamboran managing director and CEO, said the MOU aims to explore commercialization options for the development of a Darwin LNG Train 2 utilizing natural gas supplied from prospective resources within the Beetaloo Basin.
“With approximately two million net prospective acres across the Beetaloo Basin, Tamboran holds significant gas resources capable of supplying Northern Territory and Australia’s East Coast gas market for decades,” Riddle said. “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.”
The companies are already partners in the Betaloo’s EP 161 permit, with Santos as operator holding 75% interest and Tamboran 25%.
EP 161 holds ~300,000 acres of Mid Velkerri B Shale at depths below 8,850 ft (~2,700 m). The region has demonstrated Marcellus Shale-type decline curves from two Tanumbirini wells that were drilled and flow tested in 2022, Tamboran said Jan. 22.
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“We look forward to advancing discussions with Santos to unlock this significant shale gas resource and contribute to the expansion of DLNG in Darwin,” Riddle said. “This development has the potential to deliver royalties to the Northern Territory Government while generating jobs and royalties for Native Title Holders in the region.”
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