First LNG cargo from Australia’s huge gas project on its way to Japan

January 27, 2026, by Melisa Cavcic

Australian energy player Santos has achieved the first liquefied natural gas (LNG) cargo from its gas project off the coast of Australia’s Northern Territory, which is now en route to Japan.

While confirming the first LNG cargo from the Barossa LNG project, the Australian player explained that the cargo was loaded onto the Kool Blizzard and departed Darwin LNG on January 25, 2026. This LNG cargo will be delivered to the Sakai terminal in Japan on a delivered ex-ship basis.

Santos is the operator of the Barossa gas project with a 50% interest, while its joint venture partners, PRISM Energy International Australia and JERA Australia, hold the remaining 37.5% and 12.5% stakes. The project was delivered within approximately six months of the planned start date.

Kevin Gallagher, Santos’ Managing Director and Chief Executive Officer, commented: “This is an outstanding achievement for a project of this scale and complexity in the global offshore upstream sector. It demonstrates Santos’ self-execution capability in delivering major development projects and the success of our disciplined, low-cost operating model.”

Following a final investment decision (FID) for Barossa LNG in March 2021, BW Offshore’s FPSO BW Opal achieved first gas in September 2025. LNG production began after the completion of the Darwin LNG life extension project and cool down of the LNG train and storage tank.

The FPSO will be permanently situated at the Barossa gas field, approximately 285 kilometers offshore Darwin in the Northern Territory of Australia, to feed the Darwin LNG plant for the next two decades.

Gallagher added: “At the same time, Barossa LNG will continue to drive a stronger economy for the Northern Territory and Territorians. The 2025-26 Northern Territory budget papers forecast Gross State Product to rebound by 7.8 per cent for the year, largely driven by Barossa LNG exports, before growing a further 5.9 per cent in 2026-27 on the back of the LNG industry.

“Barossa LNG will secure approximately 300 permanent positions in the Northern Territory for the next 20 years, with an estimated A$2.5 billion worth of wages and contracts expected to flow for Territorians over that time.”