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

MISC Secures Long-Term Charter for Papua New Guinea's First FSO

Vantage Drilling’s Ultra-Deepwater Drillship Heads to India Under $260M Contract

Japan’s JERA Agrees Long-Term LNG Supply from Middle East

JERA Lifts First LNG Cargo From Barossa Gas Project in Australia

Thailand's Gulf Energy Eyes Long-Term LNG Supply

CNOOC Makes Major Oil Discovery in Bohai Sea

CNOOC Launches New Offshore Oil Development in Southern China

Saipem Nets Multibillion-Dollar Job at World's Largest Offshore Gas Field

Eni Expands Asian Footprint with Long-Term LNG Contract in Thailand

Aramco Expands US Partnerships with $30B in New Deals

Current News

Eni Nears FID for Indonesia’s Offshore Gas Projects

GLO Marine to Invest $7M in New Vessel Retrofit Hub in Romania

Seatrium Targets $40M Cost Savings in Continued Divestment Drive

Inpex Secures Environmental Approval for Indonesia’s Abadi LNG Project

MISC Secures Long-Term Charter for Papua New Guinea's First FSO

Dolphin Drilling, Vantris Ink Marketing Deal for Blackford Dolphin Semi-Sub

Saipem Agrees $272M Deal to Acquire Deep Value Driller Drillship

DUG Hooks Multi-Client Seismic Reprocessing Survey off Malaysia

MISC, PTSC Extend Ruby II FPSO Operations Offshore Vietnam

Petronas Takes Operatorship of Oman’s Offshore Block 18

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