Barossa Field: Australia’s new source of LNG supply

A milestone for Santos

Australia has taken a new step in its gas journey with the announcement that Santos, one of the country’s leading independent energy companies, has delivered first gas production from the Barossa field. 

Located offshore the Northern Territory, the project represents an investment of about $4.6 billion and will serve as the key replacement for the now-depleted Bayu-Undan field, according to Argus.

The start-up is marked by the readiness of the floating production, storage, and offloading vessel (FPSO) BW Opal, which connected to the Barossa project just three months ago.

Its rapid move into operation underlines the urgency of sustaining LNG exports from northern Australia.

High-performance wells

Santos drilled six wells for the project, each expected to deliver around 300 million cubic feet per day (equivalent to 3.1 billion m³ annually). 

This exceptional flow capacity provides feedstock for the Darwin LNG terminal, which processes 3.7 million tonnes per year. 

With Bayu-Undan winding down production in 2023, Barossa is now set to secure continuity for this critical LNG infrastructure.

Regulatory green light

The Northern Territory Environment Protection Authority has approved a new license for the Darwin LNG facility, effective September 19. 

This approval means LNG exports can resume with Barossa gas, providing certainty for buyers and reinforcing Darwin’s role as a hub in global gas supply chains.

Ownership and market dynamics

The Barossa project is operated by Santos, which holds a 50% stake. 

Partners include SK E&S of South Korea (37.5%) and Japan’s Jera (12.5%), reflecting the strong Asian interest in long-term gas supply from Australia. 

This regional collaboration underscores how LNG remains a cornerstone of Asia-Pacific energy security.

It hasn’t all been smooth sailing: the project faced a temporary halt due to litigation, which pushed costs up by nearly $300 million. 

Nevertheless, development restarted after the case was dismissed in 2024. 

More recently, global headlines noted Adnoc’s withdrawal from a $19 billion takeover bid for Santos, a reminder of the shifting strategies of national oil companies in the LNG sector.

Strategic importance

Located about 285 km north of Darwin, the Barossa field represents more than just another gas project. 

It secures continuity for Australian LNG exports at a time when markets are searching for reliable supply. 

For importing countries in Asia, the field ensures a steady stream of gas to meet both industrial demand and the growing pressure to replace coal with lower-carbon alternatives.

Looking ahead

The Barossa start-up illustrates how LNG remains critical to balancing global energy systems. 

While the industry debates the pace of the energy transition, projects like this one highlight the ongoing demand for gas in Asia and beyond. 

For Australia, it reinforces its role as one of the world’s LNG giants.

Barossa Field: Australia’s New Source of LNG Supply