Oil and gas producer Santos has signed an agreement to supply gas to Engie’s 479 MW Pelican Point Power Station in Australia.

Under the contract, the power plant is expected to be supplied 15 petajoules (PJ) of a mix of GLNG gas and Santos portfolio gas, starting in January next year.

The company noted that the supply deal was signed after opting to redirect gas meant for other purposes, keeping in view the energy needs of South Australia.

Santos managing director and CEO Kevin Gallagher said: “It also shows we are working with the Turnbull Government to deliver affordable and reliable energy to all Australians, and as a leading domestic gas producer across this country, Santos is best placed to bring energy security to Australian households and businesses.

"It also reflects the strong relationship we have with ENGIE in Australia and the important role played by our GLNG partners in reaching an energy solution."

“It also reflects the strong relationship we have with ENGIE in Australia and the important role played by our GLNG partners in reaching an energy solution.”

Furthermore, Santos intends to sign domestic supply contracts to meet the energy needs of households and the industry within the region.

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With assets comprising the Cooper Basin, GLNG, Papua New Guinea, Northern Australia and Western Australia Gas, Santos supplies to industries across Australia and Asia.