Barossa LNG FPSO Achieves Key Milestone Ahead of Production Start

On June 15, 2025, Santos Ltd. successfully announced the arrival of the BW Opal Floating Production Storage and Offloading (FPSO) vessel at the Barossa gas field, located approximately 285 kilometers north of Darwin. This event marks a significant milestone in the Barossa LNG project, which is slated to commence gas production in the third quarter of 2025. The FPSO has been successfully hooked up, and final commissioning activities are progressing according to plan, according to Santos Managing Director and CEO Kevin Gallagher.

The Barossa LNG project, which has attracted a substantial investment of approximately USD 3.95 billion (AUD 6.07 billion), aims to address the growing demand for liquefied natural gas (LNG) in the Asia-Pacific region. Santos is collaborating with joint venture partners SK E&S and JERA Co., Inc., with production expected to increase significantly over the next eighteen months. "Barossa is a world-class asset that, alongside the Pikka phase one project in Alaska, is anticipated to deliver a 30% increase in production compared to 2024," Gallagher stated.

The project has seen considerable progress, with five out of six planned wells drilled. The infrastructure, including a 262-kilometer Gas Export Pipeline and a 123-kilometer Darwin Pipeline Duplication, is complete, facilitating the delivery of gas to the Darwin LNG plant. This infrastructure enables the production from three wells to meet full production capacity if necessary.

The commencement of operations at the Barossa field is expected to have profound implications for energy security in Australia and its trading partners in Asia, including Japan, Korea, Malaysia, and China. According to the Australian Government's Department of Industry, Science, Energy and Resources, the LNG market in Asia is projected to grow significantly, bolstering Australia's position as a leading LNG exporter.

Santos' portfolio now encompasses a diverse range of long-term and mid-term LNG sales agreements, contracted to approximately 90% capacity over the next five years. Key customers include Diamond Gas International Pte Ltd, Hokkaido Gas Co., Ltd, and TotalEnergies Gas & Power Asia Limited, all of which are expected to benefit from the high heating value and reliability of Santos' LNG supplies.

In addition to economic benefits, the Barossa project has fostered substantial local employment opportunities. The Darwin LNG life extension work scope has created around 300 construction and maintenance jobs, with a total investment nearing AUD 1 billion. Moreover, Santos has actively engaged with local Aboriginal communities through the Barossa Aboriginal Future Fund (BAFF), committing to invest AUD 10 million annually into community projects. This initiative aims to enhance local infrastructure and preserve cultural heritage while creating skilled job opportunities.

Gallagher emphasized the importance of these community investments: "Together, Santos’ investments and the BAFF are making a difference to local communities and will build a better future in the Territory for generations to come." As Santos prepares for the first gas production, the Barossa LNG project underscores the company's commitment to supporting regional economic development and energy security in a rapidly evolving global market.

With the FPSO now operational, stakeholders are closely monitoring the project's transition to full production, which is set to commence in the coming months. The successful integration of the Barossa project into existing operations could enhance Santos' overall production capacity, positioning the company favorably within the competitive LNG market.