Australian energy giant Santos has taken a final investment decision (FID) to proceed with Barossa, the $3.6 billion gas and condensate project, located offshore Australia.
Santos is the operator of the Barossa gas field, which is located 300 kilometres offshore Darwin in Australia.
The company said on Tuesday that the Barossa FID also kick-starts the $600 million investment in the Darwin LNG life extension and pipeline tie-in projects, which will extend the facility life for around 20 years.
The Santos-operated Darwin LNG plant has the capacity to produce approximately 3.7 million tonnes of LNG per annum.
According to Santos, Barossa is one of the lowest cost, new LNG supply projects in the world and will give Santos and Darwin LNG a competitive advantage in a tightening global LNG market.
The project represents the biggest investment in Australia’s oil and gas sector since 2012.