Barossa Gas Project – Northern Territory
The Barossa Gas Project, operated by Santos in partnership with SK E&S, is a massive offshore development located approximately 300 kilometres north of Darwin in the Timor Sea. With a price tag of A$5.6 billion, the project aims to extract gas from the Barossa field and transport it via a 262-kilometre pipeline to the Darwin LNG facility for processing and export.
Final Investment Decision (FID) was made in 2021, and the project is expected to begin producing gas by late 2025.
In April 2025, the federal offshore energy regulator (NOPSEMA) granted final environmental approval, following several legal setbacks—including a Federal Court ruling in 2022 that halted construction due to lack of proper consultation with the Tiwi Islanders.
That hurdle has since been cleared, leaving the project fully approved and well under construction.
The Barossa project has been widely condemned by scientists and environmental advocates as one of the most carbon-intensive gas developments in the world. The extracted gas contains an unusually high level of CO₂—around 18%—and must be stripped and vented before export, leading to staggering emissions.
One estimate puts the project’s lifetime climate pollution at 380 million tonnes, while others suggest it could contribute as much as 15 million tonnes of CO₂ annually—more than some small nations emit in total.
Tiwi Traditional Owners continue to oppose the project on cultural and environmental grounds, and climate experts warn it will severely undermine Australia’s pledge to reach net zero by 2050.
With its emissions intensity and export focus, the Barossa Gas Project has become a lightning rod in the national debate over fossil fuel expansion.
Barossa Gas Project Overview
- Owner/Operator: Santos Limited is the operator, with SK E&S Australia Pty Ltd as a joint venture partner.
- Location: Approximately 300 km north of Darwin in the Timor Sea, within the Bonaparte Basin.
- Offshore Status: Yes; the project is entirely offshore and not connected to the Great Artesian Basin.
- Project Value: A$5.6 billion
- Project Approval: The Australian government’s offshore energy regulator (NOPSEMA) approved the project in April 2025.
- Production Capacity: Expected to produce 3.7 million tonnes of liquefied natural gas (LNG) annually, along with 1.5 million barrels of gas condensate.
- Export vs. Domestic Use: Entirely for export to international markets, primarily in Asia (Japan and South Korea).
- Infrastructure: Includes a Floating Production, Storage, and Offloading (FPSO) facility, six subsea wells, and a 262 km gas export pipeline to Darwin LNG.
- Project Timeline: Final Investment Decision (FID) was made in March 2021. First gas is expected in the third quarter of 2025.
Environmental and Social Concerns
- Greenhouse Gas Emissions: The Barossa project is projected to be one of the world’s most carbon-intensive gas projects. One independent estimate puts its lifetime emissions at around 380 million tonnes of climate pollution over 25 years—a figure that would make it among the worst-polluting oil and gas ventures globally. This is due in part to the extraordinarily high CO₂ content (estimated at 18%) in the extracted gas.
- Traditional Owner Opposition: The Tiwi Islanders have strongly opposed the project due to its impact on Sea Country, cultural heritage, and marine ecosystems.
- Legal Challenges: In 2022, the Federal Court temporarily halted pipeline construction after finding Santos failed to properly consult the Tiwi people. The project has since resumed following further approvals, but opposition continues.
- Community Groups: “Stop Barossa Gas” campaign, supported by the Environmental Defenders Office (EDO) and Environment Centre NT, continues to raise awareness about environmental and cultural threats.
Regulatory Approvals
- Environmental Approvals: Final environmental approvals were granted in April 2025 by NOPSEMA, allowing Santos to proceed with production.
- Legal Costs: The EDO was ordered to pay A$9 million in legal costs to Santos after a failed legal challenge—raising concerns about access to environmental justice.
Company Information
- Santos Limited: One of Australia’s largest oil and gas companies. More information on the project can be found on their official site.
The Barossa project has become a symbol of Australia’s ongoing fossil fuel expansion in defiance of climate science and Indigenous consent. With over a quarter-billion tonnes of expected carbon pollution, it raises pressing questions about the integrity of Australia’s net-zero promises.
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