Santos Ltd. estimates it may be able to ship one more LNG cargo fed by natural gas from the Bayu-Undan field before it ends production by the end of the year. Meanwhile, its project to tap additional feed gas supply for the Darwin liquefied natural gas facility could be headed for more headwinds.

Australia Production

Darwin LNG, majority owned and operated by Santos, has been fed by the Bayu-Undan offshore field since 2006. The field between North Australia and Timor-Leste also has supplied condensate and Australia’s domestic market with natural gas for over two decades.

But, as flows from the maturing field continue to dwindle, Santos’ plans to develop the Barossa gas field and connect it to Darwin have been stalled since January. Santos has been awaiting approval to commence construction after...