April 14, 2025 [Storage Terminals Magazine]- Santos has announced substantial progress across its major energy developments, with the 120-mile pipeline for the Pikka project now substantially complete—one year ahead of schedule. Only minor tie-in and punch-list tasks remain, opening up the possibility for an early project start-up, subject to weather conditions and logistical readiness in the months ahead.

In another key update, the Barossa LNG project reached 95.2 per cent completion at the end of March and remains on track to deliver first gas in Q3 2025. Offshore pipelines connecting the Barossa gas field to the Darwin LNG facility are complete, with the drilling program progressing steadily—four wells have been completed, one is suspended, and drilling on a sixth well is underway. The final phase of the subsea umbilicals, risers and flowlines installation is expected to wrap up shortly, with all supporting work packages aligned with the first gas schedule.

These project advancements were highlighted during Santos’ Annual General Meeting (AGM), where shareholders expressed overwhelming support for the company’s strategy. Notably, 85.85 per cent voted in favour of the company’s Say on Climate advisory resolution, a clear endorsement of Santos’ decarbonisation efforts and emissions reduction roadmap.

A key component of this strategy is the Moomba Carbon Capture and Storage project, now in operation for over six months. The facility is designed to store up to 1.7 million tonnes of CO₂ per year, depending on availability, and is expected to soon begin generating revenue through the allocation of Australian Carbon Credit Units by the Clean Energy Regulator.

Despite global market volatility, Santos remains resilient. Its diversified LNG portfolio continues to generate robust US dollar-denominated cash flows through long-term contracts with Asian customers, with approximately 90 per cent of LNG production contracted for the next five years. The company’s low unit production costs and free cash flow breakeven oil price of under USD 35 per barrel position it strongly to deliver consistent shareholder returns.

Santos also maintains a solid balance sheet and is on track to increase production by over 30 per cent by 2027, as Barossa and Pikka Phase 1 come online.

Kevin Gallagher, managing director and CEO of Santos, expressed confidence in the company’s direction and praised the pace of development.

“Barossa is just months away from first production and associated cash flows. The possibility of early production from Pikka has been created with completion of the pipeline a year ahead of schedule, and I am very pleased with the good, and improving, well results we are seeing as we execute the drilling program,” Gallagher said.

“The strong vote for our Say on Climate confirms that we are on the right track with our decarbonisation strategy as we look to build a commercial carbon management services business based on carbon capture and storage.”

Pikka Phase One Update:

• Over 80 percent complete as of March.

• 17 of 26 wells drilled toward first oil.

• Strong well performance with an average initial 30-day production rate of 6,900 barrels/day, peaking at 7,850 barrels/day.

• Pipeline substantially complete; grind-and-inject facility operational.

• Seawater treatment plant barge scheduled to depart Indonesia for Alaska in Q3 2025.

• No significant impacts expected from US tariffs.

Barossa LNG Update:

• 95.2 percent complete; first gas on schedule for Q3 2025.

• Four production wells completed, one suspended, one in progress.

• Subsea installation work nearing completion.

As Santos pushes forward with its strategic developments and climate commitments, the company continues to position itself as a key player in the global energy transition.

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