HomeEverythingEducationTV
Equities & FundsCrypto & Digital AssetsAI & TechnologyBusiness & CorporateUS Politics & PolicyGeopolitics & Global RiskMacro, Rates & FXCommodities & EnergyEuropean Politics & MarketsAsia-PacificReal Estate & Property
Story archiveAll categories
← All Stories

Australia shale gas project to start in September, eyeing Japan exports

Created at 17 Jul · 4:26 PM1 source↑ Market-relevant
IN SHORT

A significant Australian shale gas project in the Northern Territory is slated to commence production in September. The project, operated by Santos, is considering exports to Japan and other Asian markets amid growing energy security concerns.

✉Newsletter

PiQ Daily

Pick your topics. Get only what matters, on your cadence.

Key Numbers

50%Santos' interest in Barossa gas project
37.5%PRISM Energy International Australia's stake
12.5%JERA Australia's stake
January 25, 2026Date of first LNG cargo departure
September 2025First gas achieved from FPSO
20 yearsExpected duration of supply from FPSO
A$2.5 billionEstimated wages and contracts for Northern Territory

Who's Involved

Santos
Operator of the Barossa gas project
Kevin Gallagher
Santos Managing Director and Chief Executive Officer
PRISM Energy International Australia
Joint venture partner in Barossa project
JERA Australia
Joint venture partner in Barossa project
BW Offshore
Provider of FPSO BW Opal
Australia shale gas project to start in September, eyeing Japan exports

↳ Why This Matters

The commencement of the Barossa shale gas project is significant as it aims to bolster energy supplies for Japan and other Asian nations, potentially influencing regional energy security and pricing amidst global geopolitical instability.

Key facts

  • Australia's Barossa shale gas project is scheduled to start production in September.
  • The project is being considered as a potential supplier for Japan and other Asian markets.
  • Santos is the operator of the Barossa gas project, holding a 50% interest.
  • The first LNG cargo from the project departed Darwin on January 25, 2026, bound for Japan.
  • First gas from the project's FPSO BW Opal was achieved in September 2025.

A significant Australian shale gas project, the Barossa development in the Northern Territory, is slated to commence production in September, with potential exports to Japan and other Asian markets being considered. This comes amid growing demand for energy security due to ongoing geopolitical tensions, particularly the Iran war.

Santos, the operator of the Barossa project with a 50% stake, has already achieved a milestone with the first liquefied natural gas (LNG) cargo departing Darwin on January 25, 2026, aboard the Kool Blizzard. This cargo is en route to Japan's Sakai terminal. The project's floating production, storage, and offloading (FPSO) unit, BW Opal, achieved first gas in September 2025, following the completion of the Darwin LNG life extension project. The FPSO is expected to supply the Darwin LNG plant for the next two decades.

Santos' Managing Director and CEO, Kevin Gallagher, highlighted the project's scale and complexity, emphasizing Santos' capability in delivering major development projects. He also noted the project's anticipated economic benefits for the Northern Territory, forecasting a rebound in Gross State Product and the creation of approximately 300 permanent positions over 20 years, with an estimated A$2.5 billion in wages and contracts.

Frequently asked questions

The project is scheduled to begin producing in September.

Santos is the operator of the Barossa gas project.

The first LNG cargo departed Darwin on January 25, 2026, and is en route to the Sakai terminal in Japan.

The project is forecast to significantly boost the Northern Territory's Gross State Product and create approximately 300 permanent jobs, with an estimated A$2.5 billion in wages and contracts over 20 years.

What Happens Next

01The Barossa project is expected to begin production in September.
02Santos will continue to assess export opportunities to Japan and other Asian markets.

Get the newsletter.

Pick the topics you actually care about. We'll email when there's news worth your time, on the cadence you choose. Cancel any time from your account.

Cadence
CME Headlines
  • Performance Bond Requirements: Agriculture, Energy and FX Margins — Effective July 17, 2026
    16 Jul · 9:30 PM
  • Product Modification Summary for Lithium Hydroxide CIF CJK (Fastmarkets) Futures and Average Price Option Contracts — Effective July 31, 2026
    16 Jul · 9:30 PM
  • UPDATE: Fastmarkets Methodology Change in Connection with the Lithium Hydroxide CIF CJK (Fastmarkets) Futures and Average Price Option Contracts
    16 Jul · 9:15 PM

How It Developed

Santos' Barossa gas project in Australia's Northern Territory is set to begin production in September.
The project is considering exports to Japan and other parts of Asia.
Santos achieved the first liquefied natural gas (LNG) cargo from its Barossa project in January 2026.
The first LNG cargo was loaded onto the Kool Blizzard and departed Darwin LNG on January 25, 2026.
This cargo is destined for the Sakai terminal in Japan.
Santos is the operator of the Barossa gas project with a 50% interest.
BW Offshore's FPSO BW Opal achieved first gas in September 2025.
LNG production began after the completion of the Darwin LNG life extension project.

Sources

T1
Australia shale gas project to start in September, eyeing Japan exportsNikkei Asia
T2
First LNG cargo from Australia's huge gas project on its way to Japanoffshore-energy.biz
T2
Baker Hughes joins Australian shale gas project | Upstreamupstreamonline.com

Related Stories

China Seeks Long-Term LNG Deals Beyond the Strait of Hormuz
17 Jul · 12:46 PM
IEA Head: Oil Security Critical Amid Strait of Hormuz Concerns
17 Jul · 2:11 AM
Uzbekistan attracts green energy investment from Saudi, UAE, Japan
17 Jul · 2:16 AM
India, South Africa Plan Strategic Petroleum Reserve Expansion
17 Jul · 1:56 AM
US, Australia Pledge $2B for Critical Minerals, Advance Alcoa Gallium Project
17 Jul · 2:33 AM