Rahul SomvanshiFreedom of Information documents obtained by Environment Centre NT reveal Santos’ liquefied natural gas (LNG) export facility has been leaking methane for nearly two decades, with multiple regulators aware but failing to require repairs or inform the public.
The Hidden Leak
Santos’ Darwin LNG facility has been leaking methane since it opened in 2006. Drone monitoring conducted during 2019-2020 due diligence for the sale of Darwin LNG assets from ConocoPhillips to Santos estimated the leak rate at up to 184 kg of methane per hour, though the confidential reports note significant uncertainty in these measurements.
The leak stems from a design flaw in the LNG storage tank. According to ABC reporting, LNG overflow into the annular space soaked insulation, and extreme cold imposed thermal stress on a carbon-steel vapor barrier, causing weld seams to crack and allowing methane to escape. Cryogenic conditions (-162°C) can cause brittle fracture in materials not designed for such extreme temperatures.
Climate Impact
The Climate Council has identified methane as “the second most significant climate pollutant after carbon dioxide” and a climate super-pollutant that’s accelerating extreme weather events.
The Climate Council has noted that Australia ranks as the world’s 12th largest methane polluter, with coal and gas companies potentially under-reporting their methane pollution by up to 60 percent according to International Energy Agency analyses.
Professor Lesley Hughes has previously stated in Climate Council materials that “a promise is not a plan” regarding Australia’s commitment to the Global Methane Pledge, which aims to reduce global methane emissions by 30 percent by 2030.
Regulatory Awareness and Inaction
Multiple regulators were informed about the leak but did not mandate repairs or notify the public:
- FOI documents show ConocoPhillips notified the Clean Energy Regulator on May 29, 2020
- NT EPA and NT WorkSafe were made aware
- Santos engaged CSIRO to undertake monitoring of the fugitive methane emissions, but neither the existence of the leak nor the results of the monitoring have been made public
- NOPSEMA was informed about the leak in late 2024 according to FOI materials, yet still approved Santos’ Barossa LNG project in April 2025
The facility is currently shut down for works in preparation for backfill with Barossa gas, but according to reporting, the underlying design fault remains unresolved. The Darwin LNG license is due for renewal by the NT EPA on September 18, 2025.
Climate Impact and Methane Potency
The environmental consequences are substantial. Methane is an extremely potent greenhouse gas, with warming potential approximately 84-87 times greater than carbon dioxide over a 20-year period, and about 28-36 times over a 100-year period.
Dr. Sean Bay, ARC DECRA Fellow at La Trobe University, has commented on the seriousness of methane emissions: “Today’s report by the ABC on the Darwin LNG methane leak is extremely concerning. Methane is a powerful greenhouse gas, up to 80 times more powerful than carbon dioxide.”
The International Energy Agency has found Australia is underreporting methane emissions by approximately 60% based on measurement studies compared to national inventories, primarily because fossil fuel companies are allowed to estimate rather than measure their emissions.
Political Response
The Australian Greens have launched a three-pronged response:
- Letters to Ministers Chris Bowen (Climate) and Tim Ayres (CSIRO) demanding explanations and action
- Request to the Auditor General for a review of regulatory conduct
- Senate motion to order production of documents from federal regulators
Senator Larissa Waters stated: “The responsible Ministers must urgently explain why their regulators knowingly allowed Santos to leak methane, an extremely potent heat-trapping gas that has a higher global warming potential than carbon dioxide, for almost two decades.”
Senator Steph Hodgins-May added concerns about industry capture of regulators: “CSIRO has financial relationships with the gas industry, and in the past they have failed to disclose these links.”
Corporate Context
The leak disclosure comes at a critical time for Santos:
- As of late August 2025, the company’s market capitalization is approximately A$26 billion with reported FY2024 underlying profit of about A$1.2 billion
- The Darwin LNG facility is scheduled to be backfilled with gas from Santos’ controversial Barossa project in late 2025
- A consortium led by Abu Dhabi National Oil Company (ADNOC) is conducting due diligence for a potential takeover of Santos, with due diligence ending September 19, 2025
Environment Centre NT Executive Director Kirsty Howey characterized the situation as “a national scandal and an unfolding disaster.”
Monitoring Technology Advances
Dr. Martino Malerba from RMIT University explains that new technologies can help detect methane leaks: “Methane is one of the most dangerous greenhouse gases. We often call it the ‘low-hanging fruit’ of climate action because it is over 80 times more powerful than carbon dioxide at trapping heat in the atmosphere over a 20-year period.”
He adds that improved monitoring systems are essential: “Satellites are improving quickly and can now spot large plumes from space, but they still miss many smaller, long-lasting leaks. That is why on-site monitoring is essential.”
Timeline of Key Events
- 2006: Darwin LNG commissioned
- 2019-2020: Drone monitoring during sale due diligence detects significant methane leakage
- May 29, 2020: ConocoPhillips notifies Clean Energy Regulator about the leak
- Late 2024: NOPSEMA informed about the leak according to FOI materials
- April 22, 2025: NOPSEMA approves Santos’ Barossa LNG project
- September 18, 2025: Darwin LNG environment protection license expires/renewal due
The Australian Government has signed up to the Global Methane Pledge to slash global methane emissions by 30 percent by 2030, but according to Climate Council materials, Australia lacks specific methane reduction targets or a dedicated strategy to address the issue.
What This Means for Everyday Australians
For the average person, this case reveals several important takeaways:
- Health and Safety Concerns: Methane leaks pose potential safety risks as methane is highly flammable in certain concentrations. However, authorities have not identified an immediate public safety threat, as risk depends on confined accumulation which is typically managed by facility safety systems.
- Consumer Cost Implications: Unaccounted methane leaks represent wasted energy resources, which could potentially contribute to inefficiencies in the energy system.
- Climate Accountability Gap: The 20-year leak demonstrates gaps in how emissions are measured and addressed, affecting Australia’s ability to meet its climate commitments.
- Regulatory Trust Deficit: Multiple agencies knew about this environmental issue for years with limited regulatory action, raising questions about oversight effectiveness.
- Upcoming Decision Point: The September 18 license renewal represents a regulatory opportunity to address the issue, with potential implications for how fugitive emissions are handled across Australia’s energy sector.
The leak demonstrates how pollution can continue without proper oversight, highlighting the need for independent monitoring and verification systems that don’t rely solely on industry self-reporting.
