Santos Limited (ASX:STO) saw its stock soar 5.17% during Wednesday's trading session, following the announcement that the company received final environmental approval for its AU$5.8 billion Barossa gas project. This crucial development has cleared the last major hurdle for the Timor Sea project, paving the way for first gas production in the third quarter of the year.

The approval from the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) comes after a failed legal challenge by the Environmental Defenders Office. Santos reported that construction of the Barossa project is more than 95% complete, with key subsea infrastructure and pipeline work already finished. The project is set to supply gas to the Darwin LNG facility, further solidifying Santos' position in the Australian energy market.

Adding to the positive sentiment, the broader Australian energy sector experienced gains, with energy stocks reaching a two-week high. This uptick was supported by strong oil prices, which rose more than $1 per barrel on Tuesday. The combination of project-specific news and favorable market conditions has contributed to Santos' significant stock price increase, reflecting investor optimism about the company's growth prospects and the overall energy sector outlook.