Australia's Santos Signs Two Separate LNG Agreements with POSCO Steel & Western LNG

Santos, Australia's largest gas company, announced on Tuesday that it had signed an LNG?supply contract with POSCO Steel and a liquified natural gas (LNG),?purchase agreement with Western Liquefied Gas.

Santos will provide LNG to POSCO for a period of 10 years on a basis "delivered from ship". The LNG will come from Santos' global portfolio of diversified LNG, and supply is expected to begin in 2030 or 2031.

Santos plans to purchase approximately 1 million metric tons of LNG per year (mtpa), from the proposed Ksi Lisims project, located in British Columbia, Canada. The LNG will be purchased "free on board"

Santos has proposed a deal that will allow it to purchase LNG from the company for up 20 years. The first deliveries are expected in 2031.

Santos stated that Ksi Lisims, a floating LNG project with a 12-mtpa capacity in British Columbia on land owned and controlled by the Nisga’a Nation is proposed.

Kevin Gallagher, Santos' Managing Director and CEO, said that the agreements "demonstrate" the continued growth and diversification in the company’s global LNG portfolio which?supports? the growing energy requirements?of partners and customers across Asia.

The company's shares fell by 1.7% to A$8.58 at 02:00 GMT, following the market which had fallen 0.9%.

(source: Reuters)