Papua LNG Costs Put Santos at a Crossroads

Santos is approaching a defining moment. the long-delayed Papua LNG project, now carrying a significantly inflated price tag, is edging toward a final investment decision in 2026. But the project no longer sits in the same market, funding or policy environment that shaped earlier LNG megaprojects in the region.

TotalEnergies, which leads the development, is reportedly close to awarding a construction contract, potentially next month. For Santos, which owns about 23 per cent of the venture, committing now means weighting cost risk, rising ESG scrutiny and a softer LNG demand outlook.

A Cost Base. . .

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