Tamboran Resources and Santos Collaborate on Darwin LNG Expansion

Highlights 

• Tamboran Resources partners with Santos to explore Darwin LNG expansion. 
• Agreement focuses on supplying natural gas to Middle Arm facility. 
• Santos holds a 43.4% stake in the current project. 

Tamboran Resources (ASX:TBN) shares experienced a notable rise on Thursday after the company entered into a strategic agreement with Santos (ASX:STO). The partnership aims to explore opportunities for supplying natural gas to a major Darwin liquefied natural gas (LNG) facility, signaling a promising step forward in Australia’s energy sector. 

The collaboration focuses on evaluating the potential for an additional production train at the Darwin Middle Arm LNG facility, one of the prominent LNG hubs in the region. This project is positioned to enhance natural gas supply capabilities, boosting the facility's expansion prospects. Tamboran Resources announced the development, leading to a surge in its share price, which climbed by 6.3% during morning trading hours AEDT. 

The expansion project holds significant promise for both companies, as well as for Australia's LNG industry. It is expected to optimize resource utilization and strengthen Australia's position as a key exporter in the global energy market. Currently, Santos, a major player in the energy sector, holds a 43.4% stake in the Darwin Middle Arm facility, underlining its influential role in the project. 

This agreement comes at a time when demand for LNG continues to grow globally, supported by an increasing shift towards cleaner energy sources. The exploration of this partnership aligns with both companies' strategies to maximize value from Australia's vast natural gas reserves. 

With the potential expansion of Darwin LNG operations, Tamboran Resources and Santos are set to contribute further to economic growth in the Northern Territory. Moreover, their combined efforts will play a vital role in addressing regional and international energy demands. 

This partnership is part of broader plans to explore sustainable and innovative solutions for LNG production and supply. It also signals a commitment by both companies to collaborative efforts that leverage their respective expertise in the energy sector. 

Investors and stakeholders will be keeping a close watch on the progress of this project as the companies advance evaluations. The potential success of this venture could bolster Australia's reputation as a leading player in the LNG market, driving further interest in Tamboran Resources and Santos.