Overview
- Santos halted exports from the Darwin LNG plant to replace dry gas seals on compressors aboard the BW Opal vessel that processes gas from the Barossa field.
- The company said Barossa LNG is in final commissioning and that it will flush the system before returning the plant to full rates, but it did not provide a restart date.
- The outage hits during a sharp supply shortfall tied to war damage at Qatar’s Ras Laffan and limits in the Strait of Hormuz, with some spot cargoes in Asia reported near $25 per MMBtu.
- Analysts warned the setback increases the chance Santos will cut its 2026 production outlook, citing earlier unplanned outages at Barossa and flooding in the Cooper Basin.
- Investor optimism about higher LNG prices has lifted Santos and Woodside shares, and Barossa only began commercial shipments two months ago to backfill Darwin LNG.