By David Winning

SYDNEY--Santos Ltd. said it has made a final investment decision to proceed with the Barossa natural-gas project, an early mover in what analysts expect will be a wave of new investments by energy companies in Australia.

Natural gas from Barossa will feed the existing Darwin LNG facility, operated by Santos, where it will be turned into liquefied natural gas for export. First production from the US$3.6 billion Barossa project is expected in the first half of 2025.

Santos said a final investment decision on Barossa also triggers US$600 million in planned investments to extend the life of the Darwin LNG facility for around 20 years. The Darwin LNG plant can produce about 3.7 million tons of LNG annually.

"As we enter this next growth phase, we will remain disciplined in managing our major project costs, consistent with our low-cost operating model," said Chief Executive Kevin Gallagher.

A final investment decision on Barossa, which will include the anchoring of a floating production, storage and offloading vessel and construction of a gas-export pipeline, is the final condition for the sale of a 25% stake in the Darwin LNG facility and Bayu-Undan field to South Korea's SK E&S.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

03-29-21 1747ET