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

OPEC+ Passes on Oil Output Increase, Weighs the "Trump Effect"

Sembcorp Signs 10-Year LNG Supply Contract with Chevron

Yinson and PetroVietnam JV Get FSO Contract for Vietnamese Field

BP Greenlights $7B CCUS Scheme Tied to Indonesia LNG Facility

CNOOC Starts Production at Another Oil Field in South China Sea

Nong Yao C Development Bolsters Valeura’s Production Rates Off Thailand

TotalEnergies Signs LNG Supply Deal with South Korea’s HD Hyundai Chemical

First Oil Starts Flowing at CNOOC’s South China Sea Field

TotalEnergies Extends LNG Supply Agreement with CNOOC Until 2034

ADNOC Signs 15-Year LNG Supply Deal with Indian Oil

Current News

US Operator Finds Oil Offshore Vietnam

BP to Help Boost Oil and Gas Output at India’s Largest Producing Field

Europe's Gas Uncertainty Help Drive Asian LNG Spot Prices Higher

CNOOC’s South China Sea Oil Field Goes On Stream

ADES’ Fourth Suspended Jack-Up Rig Gets Work Offshore Thailand

Saipem’s Castorone Vessel on Its Way to Türkiye’s Largest Gas Field

Vestas Lands First 15MW Offshore Wind Turbine Order in Asia Pacific

Shell Shuts Down Oil Processing Unit in Singapore Due to Suspected Leak

Flare Gas Recovery Meets the Future

Pharos Energy Extends Licenses for Two Vietnamese Gas Fields

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