Energy firm Santos has signed a location swap agreement to deliver at least 18 petajoules (PJ) of gas per annum to Australia’s southern domestic market.
Under the three-year agreement, which can be extended by another year, Santos will take delivery of gas at Wallumbilla as of January next year.
The company will provide an equivalent quantity of gas at delivery points in the southern domestic market.
Santos managing director and CEO Kevin Gallagher said: “This transaction demonstrates the ability for industry to efficiently work together and support the federal government in bringing more supply into the domestic market and help mitigate gas supply concerns.
“Santos will continue to proactively pursue transactions that capture value for our shareholders and extend our long and proud history of delivering competitive wholesale gas supply to east coast domestic gas market end users.”
“We want to continue to be the leader in delivering a more reliable, affordable and cleaner energy solution to Australian homes and businesses, and that means not only accessing more gas but using our Moomba infrastructure and pipeline capacity positions to assist its delivery.”
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By GlobalDataSantos signed an agreement earlier this month to supply gas to Engie’s Pelican Point power station that caters to the energy needs of South Australia.
In April this year, Australia’s federal government unveiled its plan to curb an export of gas in order to address domestic demand.
Founded in 1954, Santos operates natural gas assets such as the Cooper Basin, GLNG, Papua New Guinea, Northern Australia and Western Australia Gas.