Santos Ltd Signs LNG Supply and Purchase Agreements

Santos Ltd signed two preliminary heads of agreement to expand its liquefied natural gas operations and diversify its supply base. The Australian energy company entered a 10-year deal to supply LNG to South Korea's POSCO Steel Co Ltd, with deliveries scheduled to begin in 2030 or 2031.

To support its sales volumes without increasing upstream capital investment, Santos also agreed to purchase approximately one million metric tons per annum of LNG for up to 20 years from the proposed Ksi Lisims LNG project in British Columbia, Canada. Deliveries from the Canadian project are expected to start in 2031.

The Ksi Lisims project is a joint venture between the Nisga'a Nation, Rockies LNG Partners, and Western LNG, with a target operational date of 2029. The project has also secured agreements with Shell PLC, Totalenergies SE, and Uniper SE.