Tamboran Resources (ASX:TBN) have signed a non-binding memorandum of understanding (MOU) with Santos (ASX:STO) to study options for a potential expansion of the Darwin liquefied natural gas facility (DLNG) in the Northern Territory and work on their joint venture in the Beetaloo basin, according to a Thursday filing with the Australian bourse.

The technical studies aim to evaluate options for supplying natural gas to the DLNG facility from the joint venture, potentially increasing the facility's capacity by up to 6 million tonnes per annum, the filing said.

Santos is the operator and has a 43.4% stake in the DLNG facility, the filing added.

Shares of the company rose past 6% in recent trade.