Barossa Ships First Condensate Cargo to South Korea

This article was first published on Rigzone here

Santos Ltd said Monday it had dispatched the first sales cargo of condensate produced from the Barossa gas project in Australia's Northern Territory to a South Korean refinery.

The shipment of about 300,000 barrels was loaded from Barossa's floating production, storage and offloading (FPSO) vessel BW Opal to the Aframax tanker Boccadesse for delivery to SK Incheon Petrochem. "The condensate will feed SK Incheon Petrochem's refinery in Incheon, producing predominantly naphtha and jet fuel", Santos said in a statement.

"Australia is a trusted supplier of energy to key partner countries, and those same partners supply Australia with the refined fuels and energy products we rely on", said Santos managing director and chief executive Kevin Gallagher. "South Korea is Australia's second-largest supplier of refined liquid fuels and Santos is proud to actively support the energy security relationship between our two countries, supplying South Korea with both LNG and the condensate feedstock that South Korean refineries need to produce the jet fuel and diesel that the Australian economy relies upon".

Meanwhile liquefied natural gas (LNG) production at Barossa has reached 97 percent of the planned rate, after starting earlier this year, Santos said.

The project is designed to extend the life of the Darwin liquefaction plant, which stopped receiving feed gas from Timor-Leste's Bayu-Undan field in 2023 due to depletion, according to Santos. Barossa's FPSO has a gas handling capacity of 850 million cubic feet a day, according to the company.

Last month JERA Co Inc, a minority owner, said it had taken delivery of its first LNG cargo from the project.

"JERA, participating through its subsidiary JERA Australia Pty Ltd, will offtake approximately 425,000 tonnes of LNG per year in line with its equity share, and received its first cargo via the LNG carrier Sohshu Maru at JERA's Futtsu LNG terminal on Friday, June 12th", the Japanese integrated power company said at the time.

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Investment in Barossa reached $3.95 billion, according to a Santos stock filing June 18, 2025.

Despite ramp-up at Barossa and the Pikka oil project in Alaska, both put onstream in 2026, Santos Ltd has narrowed its output guidance for the year from 101-111 million barrels of oil equivalent (MMboe) to 99-105 MMboe.

"2026 was always going to be a transition year for Santos with two major development projects coming online and significant commissioning activities to be completed before establishing steady-state performance at both assets. Our initial production guidance had a large band of uncertainty as a result", Gallagher said July 23 in Santos' second quarter (Q2) results statement. "However, with Barossa's ramp-up nearing completion and Pikka's first wells online, we have narrowed our production guidance to 99-105 MMboe for the full year".