Sydney, Jan 29, 2026, 17:20 AEDT — Markets have closed for the day.
- Santos ended the day 0.29% higher, at A$6.84.
- Queensland handed out new gas exploration permits to Santos and Drillsearch.
- Investors await Santos’ full-year results on Feb. 18, keen for updates on the Barossa ramp-up and future guidance.
Santos Limited (STO.AX) ended Thursday up 0.3% at A$6.84, maintaining strength late in the session. The stock gained renewed attention after new gas exploration permits were granted in Queensland, drawing local traders back in. 1
The state’s action is significant as east-coast gas swings back into policy-driven territory. Governments push for increased drilling and boosted domestic output, yet tighten controls on export projects when shortages loom.
Queensland handed out three new gas exploration permits to Santos and smaller player Drillsearch in the Cooper-Eromanga Basin near the South Australian border. The state framed the move as a step to increase supply and speed up approvals. Natural Resources and Mines Minister Dale Last said the investment aims to “get more gas into the system to relieve energy pressures.” These permits fall under a federal rule starting in 2027, which mandates that 15% to 25% of gas from Queensland’s three LNG export projects be reserved for the domestic market. The Australian Energy Market Operator has warned of possible east-coast supply shortfalls later this decade. 2
Santos kicked off the week with a boost, announcing it had loaded the first liquefied natural gas shipment from Barossa LNG onto the carrier Kool Blizzard. The cargo left Darwin LNG on Sunday, Jan. 25, heading to Japan’s Sakai terminal on a delivered ex-ship basis, where the seller is responsible for delivery to the buyer’s port, the company confirmed. CEO Kevin Gallagher hailed the milestone as “an outstanding achievement,” adding the project stayed on budget without tapping into extra contingency funds.
The Barossa milestone has drawn close attention, marking a shift from construction risk to the realities of production and cash flow. However, this doesn’t erase the policy challenges, especially regarding Santos’ role in the east-coast gas market.
In its January quarterly update, Santos projected 2026 production between 101 million and 111 million barrels of oil equivalent, rising from 87.7 million in 2025. This boost comes as Barossa and the Pikka oil project in Alaska scale up. The company also announced it will release full-year 2025 results on Feb. 18, with an investor webcast set for 11:00 a.m. AEDT that same day.
The February update is set to guide the next steps. Investors want a clear snapshot of early Barossa volumes, spending patterns, and any shifts in management’s stance on gas-market intervention.
Queensland’s acreage remains in early-stage exploration, with no guarantee of discoveries despite how appealing the permits appear on paper. Barossa, too, is still in the initial phase of operations, where setbacks during commissioning and regulatory uncertainties can weigh on sentiment more quickly than on cash flow.
Looking ahead to the week, Santos’ Feb. 18 earnings will be the key event. Investors will be scrutinizing guidance and how well the company executes, especially as the market grows more sensitive to changes in domestic gas regulations.
