Santos has announced the successful loading and dispatch of the first liquefied natural gas (LNG) cargo from the Barossa Gas Project off the coast of Australia’s Northern Territory.
The cargo, now en route to Japan, departed the Darwin LNG facility aboard tanker the Kool Blizzard on 25 January. This shipment is set for delivery to the Sakai terminal on a delivered ex-ship basis.
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Santos managing director and CEO Kevin Gallagher said: “This is an outstanding achievement for a project of this scale and complexity in the global offshore upstream sector. It demonstrates Santos’ self-execution capability in delivering major development projects and the success of our disciplined, low-cost operating model.
“I am proud of the way the whole Santos team navigated through the impacts of the Covid-19 pandemic, regulatory approvals, legal challenges and supply chain disruptions during the construction phase.”
Santos holds a 50% stake in the Barossa Gas Project, operating alongside joint venture partners PRISM Energy International Australia, which holds 37.5%, and JERA Australia, with a 12.5% share.
The announcement follows a significant milestone achieved in September 2025, when the BW Opal floating production, storage and offloading vessel (FPSO) began production after receiving its first gas.
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By GlobalDataThe Barossa offshore gas and condensate project aims to supply the Darwin LNG facility in Northern Territory with gas extracted from fields approximately 285km offshore. The gas will replace supplies from the Bayu-Undan field, which has reached the end of its operational life cycle.
The project infrastructure consists of an FPSO facility, subsea production systems, and associated pipelines dubbed Gas Export Pipeline (GEP) and Darwin Pipeline Duplication (DPD). Up to eight subsea wells are due to be developed in the Barossa field, ensuring a continuous supply of gas and condensate for processing and export.
Barossa LNG, one of the lowest-cost new supply projects globally, represents a considerable investment in Australia’s oil and gas industry since 2012. In March 2021, Santos announced the final investment decision for this $3.6bn initiative aimed at enhancing competitiveness amid tightening global markets.
JERA will take approximately 425,000t of LNG annually under its equity agreement. The proximity of Australia to Asia makes it a strategic supplier amid rising regional energy demand.
JERA chief low-carbon fuel officer Ryosuke Tsugaru said: “Australia has been a stable and trusted supplier of LNG to the region for decades, and the first cargo shipment from Barossa further strengthens our partnership as we continue to expand our competitive and resilient LNG portfolio.”
Santos recently detailed increased production projections for 2026 following the restart of operations at Darwin LNG and ongoing developments in Alaska’s Pikka oilfield. Despite a year-on-year decline in fourth-quarter LNG sales revenue to A$780m ($540.5m), domestic sales gas revenue rose by 5.9%.
Overall sales volumes saw a quarterly increase of 15%, totalling 93.5 million barrels of oil equivalent for the year.
