Environment groups are calling on the Australian Government to take action following information that oil and gas giant Santos’ major gas export hub in Darwin has been leaking huge amounts of methane for nearly 20 years.
Documents obtained by the Environment Centre NT reveal Santos’s Darwin LNG facility has been leaking methane since 2006, sparking allegations of a gas industry cover up and systemic regulatory failure.
Darwin LNG is strategically important to Australia’s position as one of the world’s largest LNG exporters and is set to be backfilled with gas from Santos controversial Barossa project in late 2025.
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Drone monitoring conducted during 2019-2020 due diligence for the sale of Darwin LNG assets from ConocoPhillips to Santos estimated the leak at up to 184kg per hour.
It’s alleged Santos and ConocoPhillips concealed the leak from the public to prevent it derailing approval for the controversial Barossa project. Despite currently being shut down for works in preparation for backfill with Barossa gas, Santos has not yet fixed the leak.
The Darwin LNG licence is due for renewal by the NTEPA on September 18, 2025.
A consortium led by the Abu Dhabi National Oil Company (ADNOC) is currently conducting due diligence in relation to a takeover bid for Santos. The end date for due diligence is 19 September 2025.
Environment Centre NT executive director Kirsty Howey said, “This is a national scandal and an unfolding disaster. Santos has been caught red-handed putting the environment, climate and the health and safety of the people of Darwin at risk, while regulators have been asleep at the wheel.
“A raft of government agencies meant to protect our climate, health, and the environment have acted in Santos’ interests instead.
“Santos must fix the leak, and the Albanese Government must fix the problem. The faulty tank threatens Australia’s climate and the health and safety of the people of Darwin.
“This is Santos’ skeleton in the closet, and the community should rightly be asking what else they are hiding.”
IEEFA lead analyst Australian gas Josh Runciman said, “Unanticipated methane leaks are always a risk for oil, gas and LNG operations, as demonstrated by the experience at Darwin LNG. It highlights just how crucial it is that robust methane emission monitoring is implemented at all relevant facilities.
“Methane emissions represent lost value for oil, gas and LNG companies, as the methane that could otherwise be sold is lost into the atmosphere. That Darwin LNG has been leaking methane for nearly two decades signals the need for stronger regulations to ensure methane leaks are actually fixed. While addressing methane emissions is often financially beneficial due to the value of the methane itself, it may not be prioritised if the benefits are small relative to other investment opportunities.
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“Santos’s failure to address the ongoing methane leaks at its Darwin facility may reflect that Santos has not set a specific methane abatement target, which is a departure from industry best practice.
“Investors in oil, gas and LNG companies face increasing risks from company methane emissions, including due to the use of inaccurate emission measurement techniques, the impact of future planned expansions and a lack of effective methane emission abatement activity.”
Santos has been contacted for comment.
