The Barossa Gas Project is one of the most significant offshore energy projects currently under development in Australia. Operated by Santos Limited, the project is located around 285 kilometers north-west of Darwin in the Timor Sea, within the Bonaparte Basin. Designed as the replacement gas source for the aging Bayu-Undan field, the project will supply feedstock to the Darwin LNG facility through a newly constructed 262-kilometer subsea pipeline system. With first gas expected in the third quarter of 2025, the Barossa Gas Project represents a cornerstone in Australia’s LNG export future and a major contributor to the Northern Territory economy.
Background and Purpose of the Barossa Gas Project
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The Bayu-Undan field, which has supplied Darwin LNG since the early 2000s, is now reaching the end of its production life. Without a new source of gas, the Darwin LNG facility would have had to cease operations, threatening local jobs, export revenue, and long-term energy security. The Barossa Gas Project was sanctioned in 2021 following a Final Investment Decision (FID) by Santos, ensuring the extension of Darwin LNG’s operating life for another 25 years.
The project involves the drilling of multiple subsea wells, a Floating Production, Storage and Offloading (FPSO) vessel named BW Opal, and a subsea pipeline network including the Gas Export Pipeline (GEP) and the Darwin Pipeline Duplication (DPD). Together, these facilities will transport gas from the offshore field to onshore processing at Darwin LNG.
Project number: AU-LNG-SLX569-E4
Project name: Barossa Gas Project
Project owner: Santos Limited
Project location: Australia
Companies Involved in the Barossa Gas Project
A project of this magnitude involves several key companies, each contributing expertise, infrastructure, or financing.
Santos Limited (Operator)
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Role: Operator and majority stakeholder.
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Scope of Work: Overall project management, drilling operations, FPSO procurement and commissioning, subsea system integration, and Darwin LNG tie-in.
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Duration of Work: Santos has been involved since acquiring ConocoPhillips’ stake in 2019 and will continue as operator throughout the project’s estimated 25-year production life.
SK E&S (South Korea)
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Role: Minority partner and LNG buyer.
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Scope of Work: Financial investment in the Barossa Gas Project and offtake agreements for LNG supply to Asian markets.
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Duration of Work: SK E&S joined the partnership prior to FID and is expected to remain throughout the project’s operational phase, securing long-term LNG imports for South Korea.
BW Offshore
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Role: Supplier of the FPSO unit (BW Opal).
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Scope of Work: Construction, delivery, and ongoing lease of the Floating Production, Storage and Offloading vessel that processes and exports gas from the Barossa field.
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Duration of Work: The FPSO lease agreement spans 15 years, with potential extensions, ensuring stable offshore production capacity.
Allseas Group
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Role: Subsea contractor for the Gas Export Pipeline.
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Scope of Work: Installation of the 262-kilometer, 26-inch subsea pipeline connecting the FPSO to the Darwin LNG facility via the DPD system.
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Duration of Work: Awarded the contract in 2021, Allseas completed pipeline installation by 2024.
TechnipFMC
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Role: Subsea infrastructure provider.
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Scope of Work: Engineering, procurement, and installation (EPCI) of subsea trees, manifolds, and production systems.
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Duration of Work: Active from 2021 through 2025, with support contracts expected during the early operational years.
McDermott International
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Role: Engineering and project support contractor.
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Scope of Work: Front-end engineering design (FEED) and subsea engineering support services for the FPSO and pipeline systems.
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Duration of Work: Involved primarily during the design and early construction phase from 2018 to 2022.
These companies, along with various local suppliers and service providers in Darwin and Northern Australia, form the backbone of the Barossa Gas Project supply chain.
Project Milestones
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2019: Santos acquires ConocoPhillips’ majority stake in Darwin LNG and Barossa.
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2021: Final Investment Decision approved; construction contracts awarded.
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2022: Drilling campaign begins; subsea systems installation commences.
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2023: FPSO construction in Asia progresses; pipeline lay preparation begins.
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2024: Completion of the 262-kilometer Gas Export Pipeline; FPSO departs shipyard.
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2025: FPSO BW Opal arrives in the Barossa field, hooks up to subsea wells, and enters commissioning.
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Q3 2025: First gas expected to flow to Darwin LNG.
Environmental Impact of the Barossa Gas Project
The Barossa field has one of the highest carbon dioxide concentrations of any Australian offshore project, averaging around 18% CO₂ content. Over its 25-year life, it is projected to emit more than 380 million tonnes of carbon dioxide. Environmental groups have criticized the project, calling it one of Australia’s most carbon-intensive gas developments.
Additionally, the subsea pipeline route passes within approximately 7 kilometers of the Tiwi Islands, raising concerns among traditional owners regarding potential impacts on sacred underwater sites and marine ecosystems. Legal challenges were launched, but in 2025 Santos secured final regulatory approvals from the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA). Despite approval, environmental and cultural concerns remain central to public debate around the project.
Stakeholder Benefits
While environmental issues are a major point of contention, the Barossa Gas Project delivers significant economic and social benefits:
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Job Creation: About 600 jobs were created during construction, and around 350 permanent roles will remain at Darwin LNG once production begins.
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Economic Growth: The project secures Darwin LNG’s future, sustaining billions in LNG export revenue for the Northern Territory.
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Local Supply Chains: Northern Territory businesses have been awarded contracts for logistics, fabrication, and workforce services.
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Energy Security: Barossa ensures continued LNG supply for Asian markets, particularly South Korea and Japan, strengthening Australia’s role as a reliable energy exporter.
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Corporate Growth: For Santos, Barossa is expected to lift overall production capacity by nearly 30% over the next two years, positioning the company as a leading Asia-Pacific LNG supplier.
Scope and Duration of Work
The Barossa Gas Project has a development scope of 25 years, aligning with the extended life of Darwin LNG. Santos and SK E&S will remain key stakeholders throughout the duration. BW Offshore will operate the FPSO under a 15-year lease, extendable as needed. Allseas and TechnipFMC have already completed their installation scopes, while Santos will continue to manage drilling and production activities until the field is depleted.
The Barossa Gas Project is a pivotal development for Australia’s energy sector. By replacing the Bayu-Undan field, it safeguards the future of Darwin LNG, sustains hundreds of jobs, and reinforces Australia’s position in global LNG markets. However, the project also highlights the ongoing tension between economic growth and environmental responsibility. With first gas targeted for late 2025, all eyes are on Santos and its partners to deliver a project that balances energy security, shareholder returns, and community expectations.
The Barossa Gas Project, operated by Santos Limited with partners SK E&S, BW Offshore, Allseas, and TechnipFMC, is a $6 billion offshore development in the Timor Sea supplying gas to Darwin LNG. With first gas expected in Q3 2025, the project extends Darwin LNG’s lifespan by 25 years, creating jobs and securing exports to Asia. Despite its benefits, Barossa faces criticism over its high carbon emissions and cultural heritage concerns.
