Santos has officially received federal approval to begin production at the controversial Barossa offshore gasfield, located off the coast of the Northern Territory. The National Offshore Petroleum Safety and Environmental Management Authority (Nopsema) has accepted the company’s environment plan for production operations, effectively removing the last regulatory hurdle for the project.
With this final nod, Santos can now proceed to extract and transport gas via pipeline to Darwin, with production slated to begin in the third quarter of 2025.
One of Australia’s Most Emission-Intensive Projects
The Barossa field contains gas with a notably high carbon dioxide content of 18%, significantly higher than other Australian gasfields. Once the gas is sold and combusted overseas, the project is expected to emit over 270 million tonnes of CO₂ over its lifespan.
READ MORE: Growth in Indigenous Businesses Spurs New Wave, but Barriers Remain
Climate advocates have strongly criticised the decision. Gavan McFadzean, from the Australian Conservation Foundation (ACF), described the development as “Australia’s dirtiest gas project” and warned that it “will produce more climate pollution than usable gas.”
Environmentalists Condemn Approval
Environmental groups have expressed outrage, particularly at the timing of the approval during a federal election campaign.
Kirsty Howey, executive director of the Environment Centre NT, said:
“It is unfathomable that it has been approved in 2025, when the climate science is clear that we can have no new fossil fuel projects if we are to avoid dangerous global heating.”
She added that the project represents a failure of climate policy, especially under the reformed Safeguard Mechanism, which was intended to cap emissions from major polluters.
The Greens’ environment spokesperson, Sarah Hanson-Young, joined the condemnation:
“Santos has been given the green-light to produce some of the dirtiest gas in Australia.”
She argued that if Labor is re-elected, the Greens will push for stronger environmental laws, including a “climate trigger” to halt fossil fuel approvals.
Government Responds Amid Election Campaign
In response to the growing backlash, a Labor campaign spokesperson defended the decision, highlighting the government’s broader commitment to reducing emissions and transitioning Australia’s energy system.
“The Barossa Gas Project is subject to the Albanese Government’s strengthened Safeguard Mechanism,” they said, emphasizing the requirement for major emitters to reduce or offset emissions in line with Australia’s net-zero by 2050 targets.
They also stressed that decisions on offshore resource projects are made independently by Nopsema, the national offshore regulator.
Legal Challenges and Cultural Concerns
The final production approval comes after previous legal battles concerning other parts of the Barossa development, including an unsuccessful legal challenge regarding submerged cultural heritage. The Environmental Defenders Office, representing Tiwi Island claimants, had raised concerns about the environmental impact of the proposed export pipeline.
A Litmus Test for Climate Policy
Environmental groups say the approval of Barossa sends a troubling signal about Australia’s environmental governance. The ACF’s McFadzean said that Santos had not explained how the project fits within the Safeguard Mechanism’s requirements or how its emissions would be addressed.
“Barossa is a massive climate bomb,” he warned, “and it should never have been given the green light.”
With the federal election looming and the climate crisis intensifying, the Barossa project is shaping up to be a flashpoint for national debate over Australia’s fossil fuel future.
