Sydney, Jan 27, 2026, 17:30 (AEDT) — After-hours
Santos Ltd has loaded the first liquefied natural gas (LNG) cargo from its Barossa project onto the Kool Blizzard tanker. The vessel departed the Darwin LNG plant on Jan. 25, heading for Japan’s Sakai terminal under a delivered ex-ship arrangement—meaning Santos retains responsibility until it arrives at port. Shares of Santos (ASX:STO) rose 16 Australian cents, or 2.5%, to close at A$6.62, after moving between A$6.55 and A$6.695 during the day. CEO Kevin Gallagher described the shipment as “a major milestone,” noting Barossa came online about six months ahead of schedule and stayed within its original budget. Santos holds a 50% stake in the project, alongside PRISM Energy International Australia and JERA Australia.
The first cargo is crucial—it marks the transition of Barossa from commissioning to actual exports, where the project begins generating cash flow. Investors have been eager for confirmation that the field, pipeline, and plant function seamlessly as a single system.
The job isn’t done yet. Commissioning—the final phase of testing and ramping up new equipment—can drag on, and initial glitches may still disrupt volumes.
With the market closed, all eyes turn to Wednesday’s session to see if the stock can maintain its gains. Traders are eager for any sign the next cargo may be imminent and whether Santos chooses to break its silence.
Barossa faces not just operational challenges but policy risks as well. Carbon Pulse noted the project falls under Australia’s Safeguard Mechanism, which caps emissions for big facilities. The field’s elevated CO2 levels increase the urgency for abatement measures, such as the carbon capture initiative at Bayu-Undan—though a final investment decision there is still up in the air. Carbon Pulse
Santos now juggles offshore execution, Darwin LNG operations, and the expenses tied to meeting emissions regulations. Any of these factors can shift sentiment fast, especially after the stock moved sharply on one key milestone.
Looking ahead, Barossa’s performance will probably be the key market signal. Oil and LNG prices do play a role, but traders are focused on whether this turns into a consistent export stream.
Santos will release its full-year results for the period ending Dec. 31 on Feb. 18. Management plans to update guidance and field questions during a webcast starting at 11:00 a.m. AEDT.
