Santos ships first LNG cargo from Barossa project
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The news: Oil and gas major Santos told the exchange it loaded its first liquefied natural gas cargo from the Barossa joint venture project on Sunday and will deliver it to the Sakai terminal in Osaka.
The context: The Barossa Gas Project is a joint venture operated by Santos, which has a 50% interest. The other partners are South Korean conglomerate SK Group subsidiary PRISM Energy International Australia (37.5%) and Japanese energy company JERA Australia (12.5%).
The loading of the LNG cargo was flagged by Santos in its fourth quarter report released on Thursday. The shipment is the first from Darwin since 11 November 2023 following the depletion of the Bayu-Undan gas field.
Santos announced first gas from the Barossa field in September 2025 but missed its initial plan to make its first shipment by the end of 2025. Final investment decision on the project was taken in March 2021 but only received drilling approval in December 2023.
Santos managing director and CEO Kevin Gallagher said the 7.8% increase in the gross state product forecast in the 2025-26 Northern Territory budget papers is “largely driven by Barossa LNG exports”, with a further forecast 5.9% increase in 2026-27 “on the back of" the LNG industry.
He also noted the project secures 300 jobs for the next 20 years, which is equivalent to $2.5 billion in wages and contracts.
What they said: “This is an outstanding achievement for a project of this scale and complexity in the global offshore upstream sector. It demonstrates Santos’ self-execution capability in delivering major development projects and the success of our disciplined low-cost operating model,” Kevin Gallagher said.
“I am proud of the way the whole Santos team navigated through the impacts of the Covid-19 pandemic, regulatory approvals, legal challenges and supply chain disruptions during the construction phase.”
The source: ASX
