Santos has agreed to two separate non-binding liquefied natural gas (LNG) arrangements covering supply to POSCO Steel and purchases from the proposed Ksi Lisims LNG project in Canada.
The agreements support the Australian energy major’s strategy of expanding and managing its global LNG portfolio, with supply expected to begin from 2030 or 2031.
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Under proposed terms with POSCO, Santos would provide LNG for ten years on a ‘delivered ex ship’ basis.
The gas would come from Santos’ global LNG portfolio. Completion depends on negotiating and signing a sale and purchase agreement, as well as obtaining the required corporate approvals.
Santos has also signed a non-binding heads of agreement (HoA) with Western LNG and its partners to purchase around one million tonnes per annum (mtpa) from the Ksi Lisims LNG project in British Columbia (BC).
The proposed arrangement would run for up to 20 years from approximately 2031, with LNG supplied on a ‘free on board’ basis. It remains subject to definitive agreements, customary conditions precedent and corporate approvals.
Santos said the Canadian supply would complement its existing LNG portfolio in Australia and Papua New Guinea.
It would allow the company to increase sales without a corresponding rise in upstream capital investment, diversify its supply base and adjust volumes according to market conditions, customer requirements and regional pricing.
Santos managing director and CEO Kevin Gallagher stated that the arrangements demonstrated the continued growth and diversification of the company’s portfolio.
Gallagher said: “Santos has a strong track record in building long-term successful relationships with leading energy customers, which we are combining with flexible third-party supply to create value across our global LNG portfolio.
“Our recent agreements reflect the strength of our portfolio, our reputation for reliability, our ability to meet evolving customer needs and our commitment to delivering energy security for Australia’s neighbours in Asia.
“Ksi Lisims gives us access to a high-quality, competitive cost of supply of LNG that complements our equity production. Its location on Canada’s Pacific coast, access to low-cost Western Canadian natural gas and focus on lower-emissions LNG production make it an attractive addition to our portfolio.”
Ksi Lisims is a proposed 12mtpa floating LNG project on land owned by the Nisga’a Nation.
It is being developed by the Nisga’a Nation, Rockies LNG and Western LNG, and is designed to serve Pacific Basin and Asian markets using hydroelectric power for liquefaction.
The project received a BC Environmental Assessment Certificate in 2025 and entered further agreements with First Nations communities in 2026.
Last month, Santos completed the first loading of crude oil cargo from the Pikka phase one development on Alaska’s North Slope, marking the start of commercial exports from the project.
