Santos delivers its final investment decision on the Barossa gas pipeline project

Santos’s final investment decision over the $300m Darwin pipeline duplication marks an important stage in the carbon capture and storage project that promises to deliver more jobs to the NT.

Aussie resources giant Santos has announced its final investment decision on its $300m Darwin pipeline duplication.

The project will extend the Barossa gas export pipeline to the Santos-operated Darwin LNG facility and free the existing Bayu-Undan to Darwin pipeline for use in carbon capture and storage.

Running parallel with the existing Bayu Undan pipeline, the new Timor Sea pipeline will add an additional $311m to the $4.7bn Barossa gas project.

It is the largest single private economic investment in the Northern Territory since the Inpex project last decade.

Located 300km north of Darwin, gas from the Barossa field is intended to replace the current supply from the Bayu-Undan facility in East Timor.

First production at Darwin LNG using Barossa gas is scheduled for production in the first-half of 2025.

The company says the pipeline duplication, carbon capture and storage project and the extension of Darwin LNG processing facility will bring investment and jobs to the Territory and East Timor.

Managing director and chief executive Kevin Gallagher said the project would build momentum for a whole of region carbon reduction solution.

Santos chief executive Kevin Gallagher speaking at the Melbourne Mining Club on June 2, 2022. Picture – Supplied

“Taking Final Investment Decision on the Darwin Pipeline Duplication Project will allow for the Barossa project to be CCS ready,” Mr Gallagher said.

“The Bayu-Undan CCS project has the potential to capture and store up to 10m tonnes of carbon dioxide per annum, equivalent to about 1.5 per cent 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 Territory approvals, work on the pipeline duplication is expected to begin in 2023.

Also scheduled for 2023 is a final investment decision on the Bayu-Undan carbon capture and storage facility.

Santos is also working with the Australian and East Timorese governments to establish a regulatory framework to support future CCS operations.

Work on the project is about 43 per cent complete and it is expected Territory companies will be able to tender for the $800m Darwin LNG plant life extension from later this year.

Founded in 1954 and Adelaide-based, the name Santos is an acronym for South Australia Northern Territory Oil Search.