Santos has received final approval from Australia’s national offshore gas regulator for its $5.6 billion Barossa gas project in the Timor Sea.
The project, located about 300 kilometres north of Darwin, involves drilling for natural gas to be exported as liquefied natural gas (LNG) to markets in countries such as South Korea and Japan.
On Tuesday, the federal offshore gas regulator NOPSEMA signed off on Santos’s final environment plan for production operations, clearing the way for the major development to proceed after facing several legal challenges.
The Barossa project made headlines last year after a Federal Court judge criticised the Environmental Defenders Office (EDO) over its unsuccessful legal action against the pipeline, filed on behalf of Tiwi Islands elders.
However, in 2022, a separate EDO-led case saw Tiwi Islands traditional owners win a Federal Court ruling that forced NOPSEMA to tighten its consultation rules with Indigenous groups for offshore gas projects.
Barossa is one of Australia’s largest oil and gas investments in a decade and is expected to be among the highest-emitting projects globally. Its gas reservoir contains around 18 per cent carbon dioxide, meaning the operation could generate more emissions than LNG itself.
Santos’s project documents estimate the Barossa venture could produce 15.2 million tonnes of greenhouse gases per year, totalling about 380 million tonnes over its expected 25-year lifespan.
Environmental groups criticise approval amid climate concerns
Kirsty Howey, executive director of Environment Centre NT, labelled Barossa “one of the dirtiest gas fields in the country”, arguing it contradicts global climate science calling for no new fossil fuel developments.
She added the project’s approval highlights the limitations of Australia’s safeguard mechanism, which requires major industrial polluters to gradually cut or offset their emissions.
Climate Council analyst Ben McLeod said the approval was “at odds” with Australia’s broader climate commitments, noting Barossa would be one of the most carbon-intensive gas projects worldwide.
A Labor campaign spokesperson stressed that final regulatory decisions for offshore projects rest with the independent NOPSEMA authority. They added the Albanese government remained focused on cutting emissions and easing energy costs after years of inaction by previous administrations.
Santos confirmed the project remains on schedule, with gas production targeted for the third quarter of 2025, though the company did not address how it plans to meet the safeguard mechanism’s emissions requirements.
