Santos hails first shipment of Barossa gas to Japan
The first shipment of liquefied natural gas from the Barossa project is on its way to Japan, with energy company Santos calling it an outstanding achievement for such a large and complex project.
In an ASX announcement on Tuesday, Santos CEO Kevin Gallagher said the cargo left Darwin bound for Japan’s Sakai terminal on Sunday at Kool Blizzard.
The Barossa gas field, about 300 kilometers north of Darwin, has faced a series of delays.
Santos is the operator and holds a 50 per cent interest in the gas project with joint venture partners PRISM Energy International Australia (37.5 per cent) and JERA Australia (12.5 per cent).
Mr Gallagher said this was a significant milestone for Barossa LNG, with Santos delivering the project within approximately six months of the planned start date and within the original budget, without the need for additional contingencies.
“This is an outstanding achievement for a project of this scale and complexity in the global offshore upstream sector.
“This demonstrates Santos’ self-executing ability to deliver major development projects and the success of our disciplined, low-cost operating model.”
Mr Gallagher said he was proud of Santos’ progress during the COVID-19 pandemic, regulatory approvals, legal challenges and supply chain disruptions during the construction phase.
In early 2024, Santos won a federal court challenge filed by Tiwi Island elders over its Barossa plans, allowing the company to proceed with laying an underwater pipeline for its $6.1 billion project.
The elders had asked Santos to revise its environmental management plan to include potential risks to underwater sanctuaries.
Meanwhile, environmental groups and energy experts have recently raised concerns that the Darwin plant’s storage tank has been leaking methane for years.
Mr Gallagher said Barossa LNG would continue to deliver a stronger economy for the Northern Territory and Territors.
He said the 2025-26 NT budget documents forecast Gross State Product to recover by 7.8 per cent for the year, largely driven by Barossa LNG exports.
The project will also secure around 300 permanent jobs in the NT over the next 20 years, with an estimated A$2.5 billion worth of wages and contracts expected to flow to Territorians over that period.
Mr Gallagher said the Barossa Aboriginal Future Fund was set up to invest in coastal communities and received up to $10 million a year from Barossa LNG.
The fund will encourage projects to improve community services, create pathways to education, employment and business opportunities, and enable Aboriginal people to maintain cultural practices and care for their country.
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