Santos, Tamboran plans for Darwin LNG expansion

Two key gas explorers in the NT have joined forces on a multi-billion dollar quest that could result in thousands of new jobs and another large processing unit for LNG in Darwin.

Tamboran Resources Chief Executive Joel Riddle. Picture: Pema Tamang Pakhrin

Two key gas explorers in the Northern Territory have joined forces on a multi-billion dollar quest that could result in thousands of new jobs and another large processing unit for LNG in Darwin.

Leading global player Santos which revealed last month that it would be honing in on its Territory onshore activities with an increased focus on the McArthur Basin and the Beetaloo, has entered into an accord with fellow NT explorer Tamboran Resources to start studies for a potential Darwin LNG Train 2 expansion.

The two will collaborate on their jointly owned Beetalo Basin acreage.

The second train would use gas from a permit that is 75 per cent owned by Santos and 25 per cent by Tamboran.

Chief Minister Lia Finocchiaro said the Government was determined to realise the full potential of the gas industry and deliver economic prosperity and energy security for Territorians.

Tamboran images December 2024.

“The energy sector is crucial to our fulfilling this promise and forms the lifeblood of Territory businesses and heavy industry, with gas and associated royalties to soon to flow from the Beetaloo Sub-basin,” she said.

Tamboran chief executive Joel Riddle said he looked forward to advancing discussions with Santos.

“We look forward to unlocking this significant shale gas resource and contribute to the expansion of DLNG in Darwin,” he 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.

“The MOU between Tamboran and Santos aims to explore commercialisation options for the development of DLNG Train 2 utilising natural gas supplied from the extensive prospective gas 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.”

Tamboran and Santos have been partners in the EP 161 acreage, which hosts the Beetaloo East area, for more than a decade.

Gas pipeline builder APA Group and Tamboran have plans for a pipeline that would take Beetaloo gas to APA’s established pipeline that runs north-south between Alice Springs and Darwin.

The Barossa project in the Timor Sea will see gas exported to Darwin LNG via a new export pipeline tied into the existing Bayu-Darwin Pipeline. Supplied

Santos’ Timor Sea Barossa offshore project is now 84 per cent complete and on track for first gas next year while the Darwin LNG life extension project is 67 per cent complete.

It has announced its intention to step up its focus on the Territory and the gas-rich McArthur province that extends 180,000sq km across the northeastern part of the Territory.

Santos’ chief executive Kevin Gallagher has expressed his optimism about the company’s NT plans.

He said he hoped that the industry together with the NT Government could unlock the wealth of the Territory’s gas resources over the next four years – both offshore with Barossa but also onshore in the Beetaloo,

The Chief Minister was further buoyed by the news of excellent flow rate results from Mereenie Joint Venture (JV) partners, including JV operator Central Petroleum, at the West Mereenie 29 (WM-29) well in the Amadeus Basin.

“The Mereenie gas field, which has been providing energy to Territorians for over 30 years, has now reached a new milestone in its history, and we are excited to see the upcoming completion and flow results of the West Mereenie 30 (WM-30) well, which are expected in the coming months,” Mrs Finocchiaro said.

“This is a significant step in ensuring that the Territory’s energy needs are met while driving economic growth and creating jobs for the future.”

Originally published as Santos, Tamboran plans for Darwin LNG expansion