Australia: Santos aims for over 30% increase in oil and gas production by 2027

The Australian energy giant Santos announces major production growth, supported by key projects and carbon storage initiatives, strengthening its position in the Asian liquefied natural gas (LNG) market.

Share:

Australian company Santos plans to increase its oil and natural gas production by more than 30% by 2027 compared to levels expected in 2024. This growth is based on the launch of its strategic Barossa and Pikka projects, according to a statement released on November 19.

Strategic projects: Barossa and Pikka

The Barossa gas project is currently 84% complete, with production scheduled to start in the third quarter of 2025. Meanwhile, the Pikka oil project is 70% complete, with initial production expected by the first half of 2026. These two projects are key components of Santos’ growth strategy.

In Papua New Guinea, the Angore wells are now operational. Two wells have been successfully connected, supplying up to 350 million standard cubic feet of gas per day to support PNG LNG production. Additionally, the company has started drilling in the highly promising Hides Footwall structure.

LNG portfolio and strategic advantages

Santos relies on a strong LNG portfolio, backed by long-term contracts with top-tier buyers and flexible contract terms. These agreements offer profitability potential adjusted to market risks. The company also highlights the competitive advantages of its projects, particularly their proximity to Asian markets. This location reduces shipping costs and associated emissions compared to suppliers from the US East Coast and the Middle East.

Kevin Gallagher, Managing Director and CEO of Santos, emphasized the importance of this strategy. “Our gas resources and LNG facilities are ideally located near large-scale, low-cost carbon storage resources and existing infrastructure that can be repurposed for carbon capture and storage (CCS),” he said.

Carbon capture and storage (CCS)

Santos also positions itself as a leader in CCS. The company recently announced an ambitious goal to develop a commercial carbon storage activity capable of storing around 14 million tons of CO2 equivalent from third parties annually by 2040. This target represents about 50% of Santos’ Scope 3 emissions in 2023.

The Moomba CCS project, a key initiative, has already stored more than 150,000 tons of CO2. During its first phase, this project is expected to store up to 1.7 million tons of CO2 per year, depending on carbon dioxide availability. Santos claims this is equivalent to approximately 70% of Australia’s net annual emissions reduction in 2023.

Italian group Eni signs a twenty-year liquefied natural gas supply contract with US-based Venture Global, covering two mn tonnes per year and marking a first for the company from the United States.
The discovery of the Gajajeira field marks a major step for Angola, strengthening its natural gas development strategy and diversifying national energy resources in a context of sector transition.
The Voskhod vessel, under US sanctions, docked at the Arctic LNG 2 plant in Russia, marking the second visit by a sanctioned ship to the site this year, according to maritime tracking data.
Japan has urgently secured several additional cargoes of liquefied natural gas from the United States to avert an imminent electricity supply shortage caused by rapidly declining national reserves expected at the end of July.
The European Commission has unveiled a proposal to prohibit the import of Russian gas into the Union, sparking intense debate on its feasibility, contractual impact and consequences for supply security among several Member States.
CNOOC Limited announces the discovery of a significant oil and gas reservoir in the buried hills of the Beibu Gulf, opening new opportunities for shallow water exploration off the coast of China.
TotalEnergies’ Mozambique LNG gas project is at the centre of a legal challenge in Washington, following the approval of a $4.7 bn loan by the US Exim Bank, amid security concerns and opposition from civil society groups.
Investors are closely watching U.S. midstream companies’ announcements regarding new gas pipeline expansions targeting promising markets in the West and Northeast, beyond traditional regions in Texas and the Southeast.
PPL Corporation and Blackstone Infrastructure announce a strategic partnership to develop new gas-fired power plants to supply electricity to data centers through long-term contracts in Pennsylvania.
Falcon Oil & Gas Ltd announces a new record initial flow test result at the Shenandoah S2-2H ST1 well and the start of its 2025 drilling campaign in the Beetaloo Basin.
The Azule Energy consortium has identified a significant gas and condensate field during Angola’s first exploration drilling dedicated to gas, marking a milestone for the country's energy sector.
Technip Energies has secured a contract to lead preparatory works for a floating liquefied natural gas unit in Africa, confirming its presence in the international gas infrastructure market.
The Slovak government is seeking guarantees from the European Union to secure its supplies as talks continue over ending Russian gas and adopting a new round of sanctions.
ArcLight Capital Partners announces the acquisition of Middletown Energy Center, a combined-cycle natural gas power plant, aimed at meeting the substantial rise in energy demand from data centers and digital infrastructure in Ohio.
The commissioning of LNG Canada, the first major Canadian liquefied natural gas export facility led by Shell, has not yet triggered the anticipated rise in natural gas prices in western Canada, still facing persistent oversupply.
Horizon Petroleum Ltd. is advancing towards the production launch of the Lachowice 7 gas well in Poland, having secured necessary permits and completed preliminary works to commence operations as early as next August.
European Union member states have requested to keep their national strategies for phasing out Russian gas by 2027 confidential, citing security concerns and market disruption risks, according to a document revealed by Reuters.
TotalEnergies becomes a member of PJM Interconnection, expanding its trading capabilities in North America's largest wholesale electricity market. The decision strengthens the company's presence in the United States.
Turkey has connected its gas grid to Syria’s and plans to begin supplying gas for power generation in the coming weeks, according to Turkish Energy Minister Alparslan Bayraktar.
Despite record electricity demand, China sees no significant increase in LNG purchases due to high prices and available alternative supplies.