Hundreds of jobs are expected to be created after the Northern Territory's largest private economic investment in a decade was given the green light.
Santos has confirmed its financial commitment to the $3.6 billion Barossa gas field project, which will be located 300km north of Darwin.
Barossa's final investment decision paves the way for an additional $600 million investment at the Darwin LNG facility to extend its life.
The projects are expected to generate about 600 jobs during construction with 350 at Darwin LNG for the next 20 years, with an estimated $2.5 billion in wages and contracts expected to flow to Territorians.
"The final investment decision for the Barossa project is a tremendous show of confidence in the long-term future of Australia's resource sector," federal minister for Resources, Water and Northern Australia Keith Pitt said on Tuesday.
"Progress on the Barossa project means new investment, economic growth and development in the Northern Territory, and for Australia."
It's hoped the project and fresh gas supply will attract more industries to the NT, which is pitching itself as a gateway to South-East Asia.
"Private investment is so important for our comeback from the coronavirus crisis, and we will continue to support this sector," NT Minister for Mining and Industry Nicole Mansion said.
The Barossa field contains over 4.5 trillion cubic feet of recoverable gas and nearly 50 million barrels of condensate or crude oil, which could lead to the establishment of a petrochemical industry in Darwin.
Santos CEO Kevin Gallagher said local workers would be favoured over fly-in-fly-out personnel for the Barossa and Darwin LNG life extension projects.
The project is expected to produce an average of 3.7 million tonnes of LNG a year, providing valuable LNG export revenue and business opportunities to assist the NT's cash-strapped economy.
The Barossa announcement is the largest private economic investment in the Territory since Inpex's Ichthys gas project decision in 2012.
NT LNG project set to boost local jobs - 7NEWS.com.au
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