Santos (ASX:STO) announced the early repayment of the PNG LNG Project finance facility, closing the debt arrangement six months ahead of schedule.
The company, which holds a 39.9% stake in the PNG LNG joint venture, made its share of the final scheduled June 2026 repayment—US$363 million—in December.
The repayment fully clears the facility, and the associated loan security is now in the process of being discharged.
The early repayment reduces future interest costs, removes restricted cash requirements, and strengthens Santos' liquidity, which currently stands at approximately US$4.0 billion in cash and undrawn committed facilities.
It also extends the company's weighted average debt maturity to around five years, leaving Santos with no scheduled debt maturities in 2026.
The next debt obligation is now due in September 2027, providing additional balance-sheet flexibility as the company prepares for new cash flows from its major development projects, including Barossa LNG and Pikka Phase 1.
Santos Managing Director and CEO Kevin Gallagher described the early repayment as a "historic milestone" for the company and its joint venture partners, including Kumul and MRDC.
"Final payment of the PNG LNG Project financing facility strengthens Santos' balance sheet as our major development projects enter production, positioning us to deliver sustainable long-term value for shareholders," Gallagher said.