First LNG cargo from giant Australian gas project getting ready for trip to Japan

January 22, 2026, by Melisa Cavcic

Australian energy player Santos has confirmed the ongoing loading of the first liquefied natural gas (LNG) cargo from its gas project off the coast of Australia’s Northern Territory. This LNG cargo is destined for Japan.

After BW Offshore’s FPSO BW Opal achieved first gas in September 2025 at the Santos-operated Barossa field offshore Australia, the FPSO continued with start-up and commissioning activities while ramping up gas export volumes, now at around 450 million standard cubic feet (mmscf) per day, which is around 75% of plant capacity.

The operator’s six-well drilling program at the gas field was completed, with all six wells tested. All wells have intersected excellent reservoir quality with an average individual well potential deliverability of about 300 mmscf per day.

Kevin Gallagher, Santos’ Managing Director and Chief Executive Officer, underlined: “We have taken a very considered approach to the final stages of commissioning to ensure offshore operations achieve a steady state, high level of reliability as quickly as possible once full production is achieved.

“Following two connection failures on the utilities and firewater mains GRE pipework systems, a campaign to strengthen all similar connections across the FPSO was undertaken which caused delays of approximately two months to our production ramp up schedule.

“While this was disappointing our aim is to commission the facilities and to identify and rectify any vulnerabilities to support our objective of achieving a high reliability operation for the long term. Our focus is now on safely and reliably increasing Barossa gas production to deliver long-term value for shareholders in line with our FID promise.”

‘Major milestone’ for Australian project: Santos unveils first gas from BW Offshore FPSO

Exploration & Production

The firm explained that LNG production began following completion of the Darwin LNG life extension project and cool down of the LNG train and storage tank. Following the end of the quarter, the first LNG cargo has been sold on a delivered ex-ship (DES) basis.

Santos claims that the cargo is currently being loaded at Darwin LNG and will be delivered to the Sakai terminal in Japan. Barossa LNG and Pikka phase 1 are expected to lift the firm’s production by around 25 to 30% by 2027 compared to 2024 levels.

“Santos remains laser focused on executing our strategy in line with our disciplined, low-cost operating model and capital allocation framework. This discipline combined with an all-in free cashflow break-even target of $45 to 50 per barrel, will position Santos over the next few years to deliver sustainable results and provide strong returns for our shareholders,” added Gallagher.