The firm explained that LNG production began following completion of the Darwin LNG life extension project and cool down of the LNG train and storage tank. Following the end of the quarter, the first LNG cargo has been sold on a delivered ex-ship (DES) basis.
Santos claims that the cargo is currently being loaded at Darwin LNG and will be delivered to the Sakai terminal in Japan. Barossa LNG and Pikka phase 1 are expected to lift the firm’s production by around 25 to 30% by 2027 compared to 2024 levels.
“Santos remains laser focused on executing our strategy in line with our disciplined, low-cost operating model and capital allocation framework. This discipline combined with an all-in free cashflow break-even target of $45 to 50 per barrel, will position Santos over the next few years to deliver sustainable results and provide strong returns for our shareholders,” added Gallagher.