Santos (ASX:STO) has commenced operations at its $6 billion Barossa Gas Project, securing the future of Darwin LNG after years of legal and technical challenges.
Following its first shipment to Japan in January, the project has revitalised the facility, which supports over 300 jobs and contributes to the Northern Territory economy.
The milestone follows a $900 million revamp of the Darwin plant, replacing the depleted Bayu-Undan field.
Santos CEO Kevin Gallagher described the turnaround as a "sliding doors" moment, noting that the site, previously slated for closure in 2022, is now positioned for another 20 years of productivity.
The development is expected to drive a 7.8% increase in the territory's gross state product this financial year.
Looking ahead, Santos is targeting the Beetaloo Basin to further bolster Darwin LNG's supply.
With global energy markets in turmoil due to the suspension of Qatari production and regional instability, Santos executives emphasise that the Beetaloo resource is critical for both domestic energy security and Asian export markets.
The company plans to commence a $300 million drilling campaign in July alongside partner Tamboran Resources (ASX:TBN).
The company aims to reach a final investment decision on a production project, which could facilitate a significant expansion of the Darwin LNG export facility.