Santos says Barossa gas project more than 70% complete

Australian energy company Santos on April 11 said that the Barossa gas project offshore Northern Territory is now more than 70% complete.

In his speech at the company's annual general meeting, Santos CEO Kevin Gallagher, said, "The first Barossa well has been completed, and pleasingly, initial well flow rates are in line with expectations and carbon dioxide content is at the low end of the expected range. At full production rates, Barossa is expected to add 1.8mn tonnes/year to Santos’ expanding LNG portfolio."

The Barossa gas project represents a significant offshore gas and condensate initiative aimed at providing a fresh source of gas to the existing 3.7mn tonnes/year Darwin LNG facility in the Northern Territory. With a $3.6bn investment programme initiated following the project's final investment decision in March 2021, the first gas from the Barossa project is scheduled for 2025.

Despite previous legal challenges and litigations related to the project's drilling and pipeline plans, a recent Australian court decision has allowed Santos to proceed with the pipeline project, removing a major hurdle and paving the way for the long-anticipated gas project.

Santos, together with its joint venture partners in the Barossa gas project, has also announced an investment of up to A$10mn ($6.52mn) in Northern Territory coastal Aboriginal communities and homelands. This investment aims to enhance community infrastructure, services, and cultural practices, while fostering pathways to skilled jobs and business opportunities.