Santos in 10-Year Barossa Gas Sales Deal with Mitsubishi

Arpit Nayak
Monday, December 7, 2020

Australia's no. 2 independent gas producer Santos Ltd said on Monday it signed a 10-year agreement to supply liquefied natural gas (LNG) from its Barossa project to a unit of Japan's Mitsubishi Corp.

Santos will supply Diamond Gas International 1.5 million tonnes of LNG from the Northern Territory project for an initial ten years with options for further LNG transactions.

The agreement is a significant step in reaching a final investment decision for the gas project, which is expected by the first half of 2021, Santos added.

The supply deal represents the company's first long-term LNG sale from one of its major LNG projects, Chief Executive Kevin Gallagher said.

"The SPA delivers a firm LNG offtake arrangement which represents over 80% of Santos' equity LNG volume from the Barossa project at our expected 50% interest level," he added.

The Adelaide-based firm in March deferred an investment decision on the project after oil prices plunged amid coronavirus-driven lockdowns.

The two companies also inked an agreement to jointly consider opportunities for carbon-neutral LNG from Barossa.

(Reporting by Arpit Nayak in Bengaluru; editing by Diane Craft and Sam Holmes)


Categories: Energy LNG Industry News Activity Production Gas Australia/NZ

Related Stories

Offshore Vietnam: Energy Imports Rise as Domestic Production Falls

Eni: New Gas Discoveries in Libya

Qatar LNG Halt Forces Asia to Seek Alternative Supplies

QatarEnergy Selects Technip Energies JV for North Field West Expansion Work

Australia and Timor-Leste Push to Advance Greater Sunrise Gas Field

Woodside to Supply LNG to JERA During Japan's Winter Peak

ADNOC Takes FID on SARB Deep Gas Project Offshore Abu Dhabi

India Seeks $30B from Reliance, BP Over Gas Shortfall at Offshore Fields

Yinson Production Cuts First Steel for Vietnam-Bound FSO

CNOOC Launches New Offshore Oil Development in Southern China

Current News

Offshore Vietnam: Energy Imports Rise as Domestic Production Falls

Eni Advances Major Deep Water Gas Hubs with Dual FIDs

Eni Advances Angola Gas Project, Secures $9B Credit Facility

TVO Customizes Tethered BOP Technology

Eni: New Gas Discoveries in Libya

Petronas Makes New Hydrocarbon Discovery in Southeast Asia

PTTEP Picks Everllence Compressors for Thailand’s Offshore CCS Project

IEA Unleashes Record 400M Barrel Oil Stockpile Release Amid Iran War Disruptions

OneSubsea Bags Third PTTEP Subsea Systems Contract in One Year

Iran War Exposes Risks of Fossil Fuel Dependence

Magazine

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com