PERTH (miningweekly.com) – Australian oil and gas major Santos has inked a location swap agreement to deliver at least 18 PJ/y of gas to the southern domestic market.
Under the three-year agreement, which takes effect in January 2018, Santos will take delivery of gas at Wallumbilla, and will then provide an equivalent quantity of gas at delivery points in the southern domestic market.
“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,” said Santos MD and CEO Kevin Gallagher.
“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.”
Gallagher said that the company wanted to continue to be a leader in delivering more reliable, affordable and cleaner energy solutions to Australia, which meant not only accessing more gas, but using its Moomba infrastructure and pipeline capacity positions to assist this delivery.