Start-up of Giant Gas Development Remains on Track as Flagship Carbon Capture and Storage Project Propels Forward Australia’s Journey to Net Zero

Wedoany.com Report-Oct 18, Australian energy player Santos has hit the 82% completion mark at its project in Commonwealth waters, bringing it closer to the first gas from its huge field off the coast of Australia. The firm also confirmed the commissioning of a carbon capture and storage (CCS) project in the Cooper Basin, which is said to be one of the world’s largest and lowest-cost CCS projects.

Santos made the final investment decision (FID) for the Barossa gas project in 2021, kick-starting a $600 million investment in the Darwin LNG life extension and pipeline tie-in projects, encompassing activities related to a floating production storage and offloading (FPSO) unit, known as Opal, subsea production wells, supporting subsea infrastructure, and a gas export pipeline tied into the existing Bayu-Undan to Darwin LNG pipeline to extend the facility life for around 20 years.

The Australian energy giant has confirmed that the project is over 82% complete and remains on track for production in the third quarter of 2025. Multiple companies are working to bring this project to life, including BW Offshore, which got the contract for the construction, connection, and operation of the FPSO for the Barossa field in March 2021 and hired Dyna-Mac in May to build the topside modules.

Kevin Gallagher, Santos’ Managing Director and Chief Executive Officer, commented: “I am very pleased with the progress of the Barossa gas project. The FPSO is in the pre-commissioning yard in Singapore, the fourth well is underway and other activities are on track for offshore commissioning to commence in the first half of 2025.”

Upon deployment, the 4.6 billion fixed 15-year FPSO contract, with additional ten-year extension options, will enable BW Offshore to take care of natural gas production at the Australian field. Santos confirmed in August 2024 that the Gas Export Pipeline (GEP) to deliver gas from the field to Darwin LNG was complete while construction activities for the Darwin Pipeline Duplication were underway.