Santos and its Barossa joint venture (JV) partners have made the final investment decision (FID) to proceed with the development of the Darwin Pipeline Duplication Project offshore the Northern Territory (NT), Australia.

The partners will build a new pipeline to enable the transportation of gas from the Barossa gas and condensate field, located in the Bonaparte basin of the Timor Sea offshore Australia, to the Santos-operated Darwin LNG (DLNG) plant in the NT.

Santos said that the FID will also allow for the repurposing of the existing pipeline from the Bayu-Undan field to Darwin the facility, to facilitate carbon capture and storage (CCS) options.

Gas from the Barossa field will replace the current supply from the Bayu-Undan facility, located in Timor-Leste.

Santos expects gas production at the DLNG plant using Barossa gas to start in the first half of 2025.

Santos managing director and CEO Kevin Gallagher said the DLNG Life Extension Darwin Pipeline Duplication, and Bayu-Undan CCS projects would promote sustainable development and job growth in the Northern Territory and Timor-Leste, and also build momentum for carbon reduction solutions in the region.

Gallagher said: “Taking FID on the Darwin Pipeline Duplication Project will allow for the Barossa project to be CCS ready.

“The Bayu-Undan CCS project has the potential to capture and store up to ten million tonnes of carbon dioxide per annum, equivalent to about 1.5% of Australia’s carbon emissions each year from other projects, customers, and other hard to abate industries, and has the potential to be the largest CCS project in the world.”

Subject to Commonwealth and NT regulatory approval, work on the Darwin Pipeline Duplication project is scheduled to start next year.

Other Barossa JV partners include South Korean energy company SK E&S, and Japan’s JERA.

Santos said it plans to announce the final investment decision for the Bayu-Undan CCS project in 2023.