Santos has entered into a new long-term agreement to extend its gas supply agreement with Brickworks.
Santos Managing Director and Chief Executive Officer Kevin Gallagher said the deal would see Santos supplying up to 35 petajoules of natural gas to Brickworks at competitive, stable, CPI-linked prices for 11 years from 2025.
“The deal is important to Santos because it provides long-term cash flows that will support our ability to fund future drilling and development in the Cooper Basin, Eastern Queensland, and at Narrabri, which will bring desperately needed new gas supplies to the east coast domestic market,” said Gallagher.
Santos and Brickworks share an ambition towards decarbonisation and are intending to collaborate on exploring net-zero energy transition opportunities, potentially including post-combustion capture, and carbon capture and storage.
“Brickworks is a loyal, long-standing and highly-valued customer of Santos, which recognises that more investment in new domestic gas supply sources is the only sustainable way to put downward pressure on gas prices and secure reliable, long-term gas supply,” he said.
Gallagher further explained that Santos’ Narrabri Gas Project is 100 per cent committed to the domestic gas market.
The project, said Gallagher, “is a vitally important to freeing up Cooper Basin gas for SA customers and increasing gas supply for east coast consumers, particularly those in NSW”.
The Hunter Gas Pipeline is just as important to get Narrabri gas to market and potentially provide a second pathway to move Queensland gas south.
“If governments are serious about getting gas prices down, they must allow the private sector to get on with the job of bringing more gas supply to market and all governments should have their shoulders to the wheel to remove barriers and accelerate investment in these projects,” said Gallagher.
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