$5bn NT offshore gas project to support 600 construction jobs

Monica Gameng   |   March 31, 2021
Darwin LNG (cr: Santos)

Territorians are a step closer to reaping the benefits from a new offshore gas project following the final investment decision (FID) announcement from Santos for the approximately $5 billion Barossa Gas Project. 

“Today's announcement shows strong confidence in investing in the Territory, and in Territory jobs. 

Territorians working on this project will have job security for the next two decades, while hundreds of new positions will also open up along the way. 

“The Territory Labor Government is delivering to make the Territory a world-class hub for gas production and manufacturing services, which is cementing our position as Australia's comeback capital,” Chief Minister Micahel Gunner said. 

The Barossa Gas Project is going to be located offshore, about 300 kilometres north of Darwin and it is set to be one of the lowest cost, new LNG supply facilities in the world, giving Santos as well as Darwin LNG a competitive advantage in the global LNG market. 

In addition, the FID will kick-start a US$600 million investment to extend the life of Darwin LNG and pipeline tie-in projects. This significant investment extends the facility's life to another 20 years. 

Darwin LNG – which is operated by Santos – has a production capacity of about 3.7 million tonnes of LNG annually. 

“As the economy re-emerges from the COVID-19 lockdowns, these job-creating and sustaining projects are critical for Australia, also unlocking new business opportunities and export income for the nation. 

“The Barossa and Darwin life extension projects are good for the economy and good for local jobs and business opportunities in the Northern Territory,” Santos Managing Director and CEO Kevin Gallagher said. 

The Barossa Gas Project and Darwin LNG life extension are expected to support up to 600 jobs during the construction phase and a further 350 jobs over the next two decades to support the production at the Darwin LNG facility. 

“We remain focused on creating jobs, and making the Territory the very best place to do business. 

“Private investment is so important for our comeback from the coronavirus crisis, and we will continue to support this sector, which creates opportunities and jobs for Territorians,” Minister for Mining and Industry Nicole Mansion said. 

The Barossa Gas Project will include a Floating Production, Storage and Offloading (FPSO) vessel, subsea production wells, supporting subsea infrastructure and a gas export pipeline linked to the existing Bayu-Undan to Darwin pipeline. 

The contract to build, connect and operate the FPSO vessel was awarded to BW Offshore. 

Santos is aiming for first production from the Barossa Gas Project in the first half of 2025. 

Source: Northern Territory Government Newsroom; Santos (1, 2); The Sydney Morning Herald 

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Monica Gameng
As Felix's Marketing Assistant since 2015, Monica is responsible for researching and sharing new and progressing projects within the construction and mining sectors in Australia. It's no surprise that Monica has her finger on the pulse of Australian major projects given she has produced more than 1,000 posts. She truly is an industry expert.
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