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Landmark LNG deal for Santos

LNG Santos

Santos has signed a binding long-term LNG supply and purchase agreement (SPA) with Hokkaido Gas Co.

The SPA will supply up to 0.4 million tonnes of LNG per annum for 10 years, commencing in 2027 from Santos’ LNG portfolio.

The two companies also intend to collaborate to explore carbon sequestration and e-methane opportunities to reduce carbon emissions.

Santos managing director and chief executive officer Kevin Gallagher said the contract demonstrates the value of the company’s LNG portfolio.

“This SPA is a significant step in developing Santos’ equity LNG portfolio and establishes a long-term relationship with Hokkaido Gas, a Japanese gas utility providing natural gas within the Hokkaido region of Japan,” he said.

It also highlights the demand for LNG from projects such as Barossa and PNG LNG.

“Our agreement with Hokkaido Gas demonstrates Santos’ commitment to providing reliable, competitive energy supplies to support our values customers in Asia,” Gallagher said.

“We also look forward to working together to explore CCS and e-methane opportunities to support Japan’s and Santos’ decarbonisation targets.”

The news follows positive financial results for Santos, with the company recording a sales revenue of US$1.4 billion and production of 21.8 million barrels of oil equivalent.

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