Santos (ASX:STO) received final environmental approval from Australia's offshore energy regulator for its AU$5.8 billion Barossa gas project, paving the way for first gas in the third quarter of the year, according to a Tuesday report by The Australian, citing the company.

The nod from the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) follows a failed legal challenge by the Environmental Defenders Office and clears the last major hurdle for the Timor Sea development, per the report.

The Barossa project will supply gas to the Darwin LNG facility, the report added.

Construction is more than 95% complete, with key subsea infrastructure and pipeline work already finished, Santos said.

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