Santos Gas Plant Shutdown Boosts Australian Exporters

0:00It's March 24th. This is Sydney News today, your AI-powered local news. Santos, one of Australia's top gas producers, has paused exports from his Darwin-liquified natural gas plant. The facility processes output from the $6 billion barossa field in the Team or C. This halt hits just as middle-east conflicts drive up global energy prices to their highest in years. The shutdown stems from replacing key compressor seals on the offshore production vessel. Santos notified stakeholders ahead of time, and they're now finishing system tests to restart soon. Duration remains unclear, though. With war disrupting shipping through the strait of Hormuz and damaging plants like guitars, a fifth of world-liquified natural gas supply is offline. Asian buyers, desperate for fuel, are bidding up prices double what they were before, with some spot cargos hitting $25 USD per million British thermal units. Investors see upside for Australian exporters.

1:01Santos shares jumped 16% since late February, while rival Woodside rose 24%. Prime Minister Anthony Albanese wants to boost coal and gas shipments to capitalize on the crunch. Analysts predict strong gains but flagged barossa delays, including last year's setbacks that cut production targets. A 2026 forecast downgrade looks likely if ramp up lags. Australia stays poised as the third largest liquefied natural gas supplier ready to fill the gap.