Santos signs long-term LNG supply contract with Hokkaido Gas

Moscow, May 28 - Neftegaz.RU. Santos today announced the signing of a binding long-term LNG Supply and Purchase Agreement (SPA) with Hokkaido Gas Co., Ltd. to provide LNG from Santos’ portfolio of world-class LNG assets.

The long-term SPA will supply up to approximately 0.4 million tonnes per annum of LNG for 10 years, commencing in 2027, from Santos’ LNG portfolio on a delivered ex-ship basis.

Hokkaido Gas and Santos also intend to collaborate to explore carbon sequestration and e-methane opportunities to reduce carbon emissions across their respective portfolios.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said the contract is consistent with Santos’ strategy of maintaining long-term LNG pricing and demonstrates the value of Santos’ high-quality LNG portfolio:

• this agreement further demonstrates the strong demand for high heating value LNG from projects such as Barossa and PNG LNG;
• this SPA is a significant step in developing Santos’ equity LNG portfolio and establishes a long-term relationship with Hokkaido Gas, a Japanese gas utility providing natural gas within the Hokkaido region of Japan;
• our agreement with Hokkaido Gas demonstrates Santos’ commitment to providing reliable, competitive energy supplies to support our valued customers in Asia;
• we also look forward to working together to explore CCS and e-methane opportunities to support Japan’s and Santos’ decarbonisation targets.