Santos Limited (ASX:STO) saw its stock soar 5.17% in intraday trading, following the announcement that the company has received final environmental approval for its AU$5.8 billion Barossa gas project. This crucial development has removed the last major hurdle for the Timor Sea project, paving the way for first gas production in the third quarter of the year.
The National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) granted the approval, overcoming a failed legal challenge by the Environmental Defenders Office. Santos reported that construction of the Barossa project is already more than 95% complete, with key subsea infrastructure and pipeline work finished. The project is set to supply gas to the Darwin LNG facility, strengthening Santos' position in the Australian energy market.
The broader Australian energy sector also contributed to Santos' positive performance, with energy stocks reaching a two-week high. Strong oil prices and positive results from Woodside Energy helped boost sentiment in the sector. As a leading gas producer, Santos is well-positioned to benefit from these favorable market conditions, further supporting its stock price increase.
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