Sydney, Jan 28, 2026, 17:14 AEDT — After-hours
- Santos closed 3.0% higher at A$6.82, after announcing its first Barossa LNG cargo shipment.
- The shipment marks a significant milestone for a project long delayed and under close scrutiny.
- Traders are turning their attention to commissioning progress and Santos’ full-year results due Feb. 18.
Santos Ltd (ASX:STO) shares climbed for a second day on Wednesday, ending 3.0% higher at A$6.82. Investors pushed the stock up following news that the company shipped its first liquefied natural gas cargo from the Barossa project. 1
The Barossa milestone is crucial today as Santos has invested years and billions to ramp up supply for Darwin LNG, with the market quick to penalize any delays. A first cargo won’t settle the debate, but it shifts the narrative.
Santos announced the first Barossa LNG cargo was loaded onto the carrier Kool Blizzard and left Darwin LNG on Jan. 25. The shipment is headed to Japan’s Sakai terminal on a “delivered ex-ship” basis, meaning the seller covers responsibility until arrival at the port. According to a filing, Santos runs Barossa with a 50% stake, while PRISM Energy International Australia holds 37.5% and JERA Australia 12.5%.
Chief executive Kevin Gallagher described the shipment as “an outstanding achievement.” He noted Santos completed the project roughly six months after its intended start date and stuck to the original budget, without tapping into extra contingency funds.
Energy analyst Saul Kavonic told Australia’s ABC last week the initial cargo would probably come as “a sigh of relief” for investors, following a stretch of commissioning delays and timetable uncertainties shadowing the project. 2
The broader LNG sector moved on Wednesday after Woodside Energy, a peer, flagged a reduced production forecast for 2026. This came despite the company beating revenue expectations for the December quarter and highlighting the effects of softer oil and gas prices. 3
Santos has flagged that repairs to piping systems delayed the Barossa Darwin LNG restart, fueling investor nerves over the pace of the ramp-up from this point. 4
Last week’s fourth-quarter report from Santos showed Pikka Phase 1 in Alaska was 98% finished by the end of December. The project is still on schedule for first oil late in Q1 2026, aiming to reach a gross plateau of 80,000 barrels per day around mid-year. The company also pegged 2026 production guidance between 101 million and 111 million barrels of oil equivalent.
The risk story remains simple: delays in commissioning, hiccups in shipping, and a drop in commodity prices could easily overshadow positive operational updates. Delivering a clean first cargo doesn’t guarantee steady production, and another technical glitch would probably shake investor confidence.
Coming Feb. 18, Santos will report full-year 2025 results. Investors are keen to see early data from Barossa and how fast new production translates into cash flow. 5
