Santos Signs 10-Year Deal to Supply South Australia Strategic Gas Reserve

Santos has executed a semipermanent Gas Sale Agreement (GSA) with the South Australian Government to proviso 200 petajoules (PJ) of earthy state implicit a decennary opening successful 2030, cementing a cardinal home proviso statement that underpins the state's vigor information strategy.

Under the agreement, Santos volition present 20 PJ of state annually from March 1, 2030, done February 2040, with proviso delivered ex-Moomba. The declaration features indexed pricing and a prepayment structure, with archetypal state scheduled to coincide with the expiration of Santos' Horizon declaration with the GLNG associated venture.

The woody provides a cornerstone marketplace for state from the Cooper Basin's Central Fields, which incorporate much than fractional of the basin's remaining proved and probable (2P) reserves. It besides supports the precocious approved Moomba Central Optimisation (MCO) project, successful which Santos and associated task spouse Beach Energy reached a last concern determination successful March 2026.

The MCO task is designed to modernize accumulation infrastructure by replacing 7 aging gas-driven compressor stations with a azygous electric-driven compressor station, portion adding caller inlet compression and powerfulness procreation capableness astatine the Moomba Gas Plant. Santos said the upgrades volition summation productivity, little operating costs and trim c emissions, portion enabling much distant operations.

The agreement's prepayment mechanics volition straight enactment superior concern successful the three-year MCO improvement program.

Chief Executive Officer Kevin Gallagher said the declaration secures semipermanent home state proviso for South Australian manufacture portion providing certainty for continued concern successful the Cooper Basin.

The statement besides reinforces the South Australian Government's Strategic Gas Reserve initiative, which is intended to safeguard home proviso and enactment concern development, including the planned translation of the Whyalla Steelworks. Santos said the woody volition assistance prolong employment crossed its South Australian operations and fortify semipermanent request for Cooper Basin accumulation arsenic Australia continues to equilibrium export commitments with home state security.

By Charles Kennedy for Oilprice.com

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