Santos managed to avoid costs on carbon pollution from its leaking Darwin gas plant after telling the federal government that forcing "international best practice" on emissions at the aging facility posed an "intolerable risk" to the company.

Documents released under Freedom of Information show the company last year was concerned that its aging Darwin liquefied natural gas plant (DLNG) could be forced to achieve net zero emissions as part of its huge new Barossa gas project in the Timor Sea.

But Santos took advantage of what environmental law expert Andrew Macintosh said was a legal "loophole" in federal rules to avoid the extra cost of potentially having to offset millions of tonnes of carbon pollution a year at the Darwin plant.

A major methane leak at the plant was r evealed by th

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