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    Santos sanctions Darwin pipeline duplication project

Summary

The decision will extend the Barossa gas export pipeline to the Darwin LNG facility and allow for the repurposing of the existing Bayu-Undan to Darwin pipeline to facilitate CCS options.

by: Shardul Sharma

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Santos sanctions Darwin pipeline duplication project

Santos, as operator of the Barossa joint venture, has taken a final investment decision to proceed with the Darwin pipeline duplication project, located offshore the Northern Territory, it said on August 29.

The decision will extend the Barossa gas export pipeline to the Santos-operated Darwin LNG (DLNG) facility and allow for the repurposing of the existing Bayu-Undan to Darwin pipeline to facilitate carbon capture and storage (CCS) options.

Gas from the Barossa field, located 300 km north of Darwin, is intended to replace the current supply from the Bayu-Undan facility located in Timor-Leste. First gas production at DLNG using Barossa gas is targeted for the first half of 2025.

Adding the Darwin pipeline duplication project is estimated to increase Santos’ share of capital expenditure for the Barossa project by approximately $311mn. The Barossa joint venture has agreed with the DLNG joint venture partners to terminate the toll arrangement for using the original Bayu-Undan to DLNG pipeline, reducing operating expenses for Barossa, Santos said.

Work is scheduled to start on the Darwin pipeline duplication project in 2023, subject to various regulatory approvals. A final investment decision on Bayu-Undan CCS is targeted for 2023. Santos said continues to work with the Australian and Timor-Leste governments to establish regulatory frameworks to support future CCS operations.