Santos successfully shipped the first LNG cargo from the Barossa gas field to Japan in January, marking the start of a project that will deliver jobs and economic impact to the Top End and the region for decades to come.

The gas was loaded to the 280 metre-long Kool Blizzard tanker and departed Darwin for the Sakai terminal in Osaka, 500 kilometres south-west of Tokyo.

Santos is the operator and has a 50 per cent interest in the Barossa gas project, with joint venture partners PRISM Energy International Australia (37.5 percent) and JERA Australia (12.5 percent).

Santos Managing Director and Chief Executive Officer Kevin Gallagher says the first shipment marked a major milestone for Barossa LNG – delivered within about six months of the planned start date and within the original budget.

The company celebrated completion of Barossa LNG at a stakeholder event in Darwin in early March, where Mr Gallagher reflected on the project, which is now supplying high-heating LNG to partners across Japan, South Korea and beyond.

“I am proud of the way the whole Santos team navigated through the impacts of the covid-19 pandemic, regulatory approvals, legal challenges and supply chain disruptions during the construction phase.

“We thank our partners, contractors, suppliers, financiers, community stakeholders and shareholders for their support.

“In addition, we have had strong bipartisan support from the Northern Territory Government since day one. Together, we have built a world-class LNG project that we can all be proud of.”

The final investment decision for Barossa LNG was taken in March 2021 as the economy was re-emerging from the covid-19 lockdowns.

“Job-creating and business-generating projects like Barossa were critical for the Northern Territory and Australia,” Mr Gallagher says. “At the time, Barossa was the biggest investment Australia’s oil and gas sector had seen for almost a decade.” 

He says Barossa LNG will continue to drive a stronger economy for the Territory. 

The 2025-26 Northern Territory budget papers forecast gross state product will rebound by 7.8 percent 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 gas industry. 

Mr Gallagher says Barossa LNG will secure about 300 permanent positions in the Territory for the next 20 years, with an estimated $2.5 billion worth of wages and contracts expected to flow for Territorians over that time. 

Santos and its joint venture partners are contributing to the Territory in other ways by establishing the Barossa Aboriginal Future Fund, which is to invest in NT coastal communities. 

The fund will receive up to $10 million per year from Barossa LNG and will invest in projects and programs to improve community and homeland infrastructure and services, establish pathways to training, jobs and business opportunities, and enable Aboriginal people to maintain cultural practices, carry out cultural obligations and care for their Country. 

“I am proud of the industry-leading investment Barossa LNG is making to help close the gap for Aboriginal Territorians,” Mr Gallagher says. 

One of the Indigenous initiatives to benefit from the Barossa Aboriginal Future Fund is the Tiwi Island Rangers program, administered by Tiwi Resources and dedicated to land management and ecological research. 

It is to expand its operations and take on more staff through a multi-million-dollar commitment from the fund. 

The partnership will enable Tiwi Resources to create more employment opportunities for rangers and upgrade their infrastructure and equipment – strengthening the Tiwi Rangers’ ability to care for country across both land and sea. 

The Barossa Aboriginal Future Fund will deliver a new ranger base at Wurankuwu on Bathurst Island, along with a new vessel, vehicle and equipment. 

It will fund the employment and training of two new Tiwi rangers, in addition to a Tiwi supervisor, and an operations coordinator. 

The commitment also includes new staff accommodation at Wurankuwu, and two new Tiwi rangers in Wurrumiyanga. 

“The expansion of the Tiwi rangers program recognises the vital role Indigenous rangers play in caring for Country,” Mr Gallagher says. 

“During our extensive consultation and engagement, the Tiwi community told us that supporting and funding the existing ranger program would be of great benefit to the Tiwi Islands and its people. 

“The purpose of the BAFF is to contribute positively to NT Aboriginal coastal communities and deliver intergenerational progress for Top End Aboriginal Territorians, building a better future for the next generation. 

“Santos and our Barossa LNG joint venture partners are committed to real and practical action to help close the gap on Aboriginal disadvantage in the Northern Territory.” 

Tiwi Resources chair Alice Munkara says: “The new agreement means a lot to us. It will create more jobs, including new rangers to look after the land, which is very important. 

“It means more people can get to the land, and to their country, which means a lot.” 

And Wurankuwu Traditional Owner Ron Poantumilui says: “I am happy about the new ranger station at Ranku, which will create great new jobs and help get people back home. Thank you to Santos for supporting us and making this partnership possible.” 

The Santos Foundation, which expanded its successful collaborative programs from Papua New Guinea to the Territory in 2024, is also making a major difference to the lives of Aboriginal people. 

It has delivered initiatives to empower young Territorians through improved access to culturally safe health services, school-based apprenticeship. 

Through the foundation’s Youth Opportunities program, in partnership with Danila Dilba Health Services, six Aboriginal health practitioners have been supported to gain their Certificate IV Aboriginal Health Practitioner accreditation. 

They will be offered jobs with Danila Dilba where they will work to help Aboriginal Territorians access culturally safe and trusted health services. 

Young people have also been supported by the foundation through its Apprenticeship Program with local partner GTNT Group, with six school-based apprenticeships leading to job-ready qualifications that will help to address the Territory’s skills shortages in carpentry, engineering, business and hospitality. 

Santos Foundation Chief Executive Officer Jodie Hatherly says collaboration with local partners in the Territory has been key to achieving the health and training programs being delivered. 

“We’re proud to work with partners who share our goal to build stronger, more resilient Territory communities and help close the gap for Aboriginal Territorians,” she says. 

“Looking to the future, the Santos Foundation board has approved several new initiatives to deepen its impact across the Northern Territory and target disease prevention and employment in both urban and remote communities.” 

The Santos Foundation is also working alongside the Barossa Aboriginal Future Fund on a range of initiatives. 

The BAFF is investing A$2.9 million to build and operate new laundry facilities for remote and urban Aboriginal communities in the Northern Territory in partnership with the Santos Foundation and the Aboriginal Investment Group. 

The investment will enable AIG to convert two transportable shipping containers into reliable laundries for Aboriginal people in the Northern Territory. 

The laundries will be in Wurrumiyanga on the Tiwi Islands and Yarrawonga in Palmerston. The BAFF’s investment will also provide continued operational support to an existing laundry service in Casuarina, Darwin. 

This initiative aims to improve access to laundry facilities for communities to help combat preventable diseases in Aboriginal people in urban and remote Northern Territory communities. 

The Community Laundry program will also create jobs in these communities and support up to 21 roles across the three locations. 

“There is a direct, evidence-based link between access to clean clothes and the prevention of acuterRheumatic fever and rheumatic heart disease. Regularly washing clothing and bedding is a crucial preventative measure, particularly in communities where limited, or no, access to laundry facilities (hot water and machines) increases the risk of infection,” Mr Gallagher says. 

“The incidence of these diseases in remote Aboriginal communities can be tens to hundreds of times higher than in the broader Australian population. 

“So, improving access to basic laundry facilities for remote and urban communities is a crucial part of building better health outcomes and helping to close the gap for Aboriginal people across the Top End.” 

“So, improving access to basic laundry facilities for remote and urban communities is a crucial part of building better health outcomes and helping to close the gap for Aboriginal people across the Top End.” TQ