Santos Ltd. has sanctioned a $3.6 billion development in the Timor Sea to extend the life of the Darwin gas export facility in Australia.

Australia-based Santos said Tuesday the final investment decision (FID) would also kick off a separate $600 million investment to extend the life of the 3.7 million metric tons/year Darwin liquefied natural gas (LNG) facility by about 20 years.

Barossa is the largest upstream project to be sanctioned in Australia since 2012, according to consultancy Wood Mackenzie.

“This decision makes a lot of sense given the significant LNG demand expected across Asia Pacific through the next two decades,” Wood Mackenzie research analyst Shaun Brady said. “As Barossa was the only logical backfill option for Darwin LNG, the Darwin facility would have...