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.