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.

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.
US natural gas production and consumption are expected to reach record highs in 2025, before slightly declining the following year, according to the latest forecasts from the US Energy Information Administration.
Naftogaz announces the launch of a natural gas well with a daily output of 383,000 cubic meters, amid a sharp decline in Ukrainian production following several military strikes on its strategic facilities.
Sonatrach and ENI have signed a $1.35 billion production-sharing agreement aiming to extract 415 million barrels of hydrocarbons in Algeria's Berkine basin, strengthening energy ties between Algiers and Rome.
Maple Creek Energy is soliciting proposals for its advanced 1,300 MW gas project in MISO Zone 6, targeting long-term contracts and strategic co-location partnerships with accelerated connection to the regional power grid.
VMOS signs a USD 2 billion loan to finance the construction of the Vaca Muerta South pipeline, aiming to boost Argentina's energy production while reducing costly natural gas imports.
According to a Wood Mackenzie report, Argentina could achieve daily gas production of 180 million cubic metres per day by 2040, aiming to become a key regional supplier and a significant exporter of liquefied natural gas.
Côte d'Ivoire and the Italian group Eni assess progress on the Baleine energy project, whose third phase plans a daily production of 150,000 barrels of oil and 200 million cubic feet of gas for the Ivorian domestic market.
The extreme heatwave in China has led to a dramatic rise in electricity consumption, while Asia records a significant drop in liquefied natural gas imports amid a tight global energy context.
E.ON, together with MM Neuss, commissions Europe’s first fully automated cogeneration plant, capable of achieving a 91 % fuel-use rate and cutting CO₂ emissions by 22 000 t a year.
Facing the lowest temperatures recorded in 30 years, the Argentine government announces reductions in natural gas supply to industries to meet the exceptional rise in residential energy demand across the country.
Solar power generation increased sharply in the United States in June, significantly reducing natural gas consumption in the power sector, despite relatively stable overall electricity demand.
Golden Pass LNG, jointly owned by Exxon Mobil and QatarEnergy, has asked US authorities for permission to re-export liquefied natural gas starting October 1, anticipating the imminent launch of its operations in Texas.
Delfin Midstream reserves gas turbine manufacturing capacity with Siemens Energy and initiates an early works programme with Samsung Heavy Industries, ahead of its anticipated final investment decision in the autumn.
Norwegian group DNO ASA signs gas offtake contract with ENGIE and secures USD 500 million financing from a major US bank to guarantee future revenues from its Norwegian gas production.