Santos’ $7bn Barossa project is two-thirds complete

A massive $7bn gas development is two-thirds complete and the connecting pipeline almost done. Read what’s progressing.

The Barossa gas project is powering along, with proponents Santos reporting construction on the $7bn development is now more than two-thirds complete.

Delivering the company’s first-quarter 2024 annual report, Santos chief executive Kevin Gallagher said it was expected the gas export pipeline could be completed within weeks.

Pipeline installation began in November 2023, and already 213km of the 262km subsea project has been laid despite almost two-years of delays and disruptions caused by baseless legal interventions by greens activists and cultural campaigners.

Mr Gallagher reported Santos’ cash flow in the quarter was US$692m and sales revenue US$1.4bn.

Kevin Gallagher addresses shareholders. Picture: NCA NewsWire / RoyVphotography

The report said the Bayu-Undan gas field, which supplied gas to the Darwin LNG plant until late last year, is still delivering molecules to the Australian domestic market via an agreement with the NT Government.

When depleted, Santos intends to use Bayu-Undan as a carbon capture and storage hub.

The report said the gas export pipeline, which will link the Barossa gas field in the Timor Sea with the Darwin LNG plant, is 70.6 per cent complete.

Thirteen of 16 modules have been installed on the floating production storage and offloading facility (FPSO).

This is expected to sail from the Singapore workshop where it is under construction to the Barossa field in the first quarter of 2025.

The Darwin LNG life extension project is now 39 per cent complete.

“I am very pleased that Barossa pipe laying activities are now almost complete and all other Barossa activities are progressing well with first gas expected in the third quarter 2025,” Mr Gallagher said.

ADELAIDE, AUSTRALIA - NewsWire Photos APRIL 11 2024: SANTOS AGM at Adelaide oval. A small group of protesters outside Adelaide oval. Kevin Gallagher. Picture: NCA NewsWire / RoyVphotography

He said Barossa was a world-class project that would be “transformative” for Santos and set the company up with long-term, stable cash flows for at least the next 10-15 years.

After the legal delays, drilling recommenced at Barossa in January with the first well completed and flowed back in line with pre-drill expectations. He said the drilling program is also progressing, with the second of the six-well program nearing completion.

Mr Gallagher said Darwin LNG has a 100 per cent local Darwin workforce and generates about $100m a year in supply and service opportunities for Territory businesses.

“We are committed to real action to help close the gap on Aboriginal disadvantage in the Northern Territory,” Mr Gallagher said.

“Training, education and good jobs are a universal foundation for ensuring every man, woman and child has the chance to achieve a quality of life most Australians – especially in our big cities – take for granted.

“They are the building blocks for individual social and economic empowerment, and just as importantly, for stronger, more resilient families and communities. Employment outcomes have declined over the last 15 years or more. Investments like those Santos is making in the Territory can help to turn this around.”