Energy company Santos’ signature Barossa project is nearing 80 per cent completion, with first production estimated within the next 12 months.
Santos executive Vince Santostefano told last week’s Northern Territory Resources Week conference in Darwin the “hard slog” project would deliver significant benefits for the Territory, nation and regional neighbours.
He told delegates the controversial pipeline environmentalists and academics misleadingly persuaded a section of the Tiwi Island community to oppose, according to a federal court judgement, had been completed, and a third Barossa well had also been drilled, with excellent reservoir results.
He said the floating production, storage and offtake vessel – which is the largest of its type in the world – was on track to arrive in Australia from Singapore early next year and that the Darwin LNG Life extension project was now 50 per cent complete.
He said Santos was investing more than $6bn in the Darwin LNG life extension, Barossa and the Bayu-Undan carbon capture and storage project.
When open, Barossa will deliver 300 new operations and maintenance jobs in the Territory with about $2.5bn in wages and supplies expected to flow into the local economy during the project’s life.
“Getting to the halfway point on the Darwin LNG life extension is a great milestone for a project of critical importance to Darwin,” Mr Santostefano said.
“Santos has invested heavily to deliver the Barossa Gas Project because our customers continue to need gas for heating, electricity and for making critical products such as fertilisers, steel and the polymers.
“These are the foundation of all kinds of chemicals and plastics – from toothpaste to medical syringes, from paint to the moulded dashboards of our cars. Countries like Japan, Korea, Malaysia, Indonesia, Singapore and China, simply will not sacrifice the energy security of their people or their economies.”
He said the Territory’s natural endowment meant it would be crucial to delivering the future energy mix required to power Australia and the region.
“The Territory has enormous potential as a leading supplier of affordable energy to Australia and the giant energy-consuming economies of Asia,” Mr Santostefano said.
“It has a wealth of gas resources – onshore and offshore – a wealth of renewable resources, particularly solar – and a wealth of both geological and nature-based carbon sequestration opportunities.
“It’s the ideal place for new industrial development including hydrogen, ammonia and polymers and potentially, critical minerals processing. It has plenty of land and deep water ports and is close to our energy markets in Asia.”
He dismissed scare campaigns against gas.
“Australia has a responsibility to use its comparative advantage in both gas and carbon storage resources for the betterment of not only our own nation, but to support regional stability by providing energy security and carbon solutions for our trading partners and friends in Asia,” he said.
Source: The NT News
