Santos has successfully shipped the first cargo from its Barossa liquefied natural gas project in Australia. The cargo was loaded onto the vessel Kool Blizzard, which departed the Darwin LNG facility on 25 January and is en route to the Sakai terminal in Japan, with an estimated arrival date of 15 February.

Project Delivery and Milestones

The project was delivered approximately six months behind its latest schedule but remained within the original US$4.5 billion budget. Santos's chief executive highlighted this as an outstanding achievement, demonstrating the company's self-execution capability and disciplined, low-cost operating model. The project team navigated challenges including the Covid-19 pandemic, regulatory approvals, legal challenges, and supply chain disruptions during construction.

Strategic and Economic Significance

The final investment decision for Barossa LNG, made in March 2021, was the largest investment in Australia's oil and gas sector in nearly a decade. The project is expected to secure around 300 permanent positions in the Northern Territory for the next 20 years, generating an estimated A$2.5 billion in wages and contracts. This milestone also marks the resumption of LNG shipments from the Darwin LNG facility, which had been idle for over two years following the depletion of feed gas from the Bayu-Undan field.

Project Ownership

The Barossa gas project is operated by Santos, which holds a 50% interest. The remaining stakes are held by PRISM Energy (37.5%) and JERA (12.5%).