Santos Ltd has been granted permission to begin laying gas pipelines for a section of its $3.6 billion Barossa gas project. However, the company is still prohibited from developing around 70 kilometers north of the Tiwi Islands.

According to a Reuters report, the ruling, made by the Federal Court of Australia on Wednesday, Nov. 15, 2023, directs Santos to halt its pipeline project around 70 kilometers north of the Tiwi Islands pending a final ruling.

In line with the ruling, the court has scheduled a hearing for the application brought by a traditional landowner on December 4.

The decision follows an interim injunction granted by the court earlier this month that prevented Santos from starting work on laying undersea pipelines at the project.

The injunction was sought by a traditional land owner from the Tiwi Islands, who argued that the project posed a risk to underwater cultural heritage.

Elders on the Islands had previously appealed to Environment Minister Tanya Plibersek to make a declaration to protect their heritage, which they said was at immediate risk of desecration from the construction.

Despite the challenges the project is currently facing, Santos maintains that it is committed to delivering the Barossa gas project and producing gas in the first half of 2025. The company also intends to vigorously defend the proceedings brought against it.