Australian energy player Santos has successfully marketed, sold, and loaded the first condensate cargo from the Barossa gas project. This milestone marks a significant achievement as the cargo is set for delivery to SK Innovation E&S in South Korea.
On July 24, approximately 300,000 barrels of condensate were loaded from the BW Opal floating production, storage, and offloading (FPSO) vessel at Barossa aboard the Aframax tanker Boccadesse. This cargo is destined for SK Incheon Petrochem’s refinery in Incheon, where it will primarily be refined into naphtha and jet fuel. The cargo is expected to reach Incheon Port in early August.
From the annual production of 3 million barrels at Barossa, SK Innovation E&S holds rights to 1.1 million barrels, based on its equity share in the project. This venture is particularly noteworthy as it marks the first instance of a Korean private company securing condensate through its own overseas resource development.
In addition to condensate, SK Innovation E&S has also been importing approximately 1.3 million tons of LNG per year from Barossa, contributing to about 3% of South Korea’s total annual LNG imports. Over the duration of the 20-year contract term, this translates to a total entitlement of 22 million barrels of condensate and 26 million tons of LNG.
“The Barossa project exemplifies how a private company can adopt a long-term perspective on overseas resource development, effectively linking commercial production to actual imports into Korea. The import of LNG and condensate reduces our dependence on external resources and bolsters the stability of Korea’s industrial supply chain,” stated a representative from SK Innovation E&S.
Located approximately 285 kilometers north of Darwin in northwestern Australia, the Barossa gas project involves key players in its development. Santos operates the project and holds a 50% interest, while joint venture partners include SK Innovation E&S’s subsidiary, PRISM Energy International Australia (37.5%), and JERA Australia (12.5%).
The commencement of condensate exports follows the successful initiation of LNG production at the Darwin LNG plant, which is currently operating at 97% of its planned production rates.
This success is echoed by JERA, which confirmed the arrival of its first LNG cargo at the Futtsu LNG terminal in Japan from the Barossa project. Through its Australian subsidiary, JERA will offtake about 425,000 tons of LNG annually in line with its equity share.
“The Darwin LNG plant is now achieving production rates close to target, with loading intervals for LNG cargoes happening roughly every eight days and condensate beginning to flow to market,” remarked Santos Managing Director and CEO Kevin Gallagher.
He further highlighted, “Australia stands as a reliable energy supplier to key partner nations, while those same partners provide Australia with essential refined fuels and energy products. South Korea is Australia’s second-largest supplier of refined liquid fuels. Santos takes pride in bolstering the energy security ties between our two countries by supplying South Korea with both LNG and the condensate feedstock crucial for its refineries, producing the jet fuel and diesel essential to the Australian economy. This recent cargo exemplifies that symbiotic relationship.”
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