Santos Signs Long Term LNG Supply Contract with Hokkaido Gas
05.30.2024 By Tank Terminals - NEWS

May 30, 2024 [Storage Terminals Magazine]- Santos has announced the signing of a binding long-term LNG supply and purchase agreement with Hokkaido Gas Co., Ltd. This agreement will provide LNG from Santos’ portfolio of world-class LNG assets.

 

Under the terms of the long-term SPA, Santos will supply up to approximately 0.4 million tonnes per annum of LNG for ten years, beginning in 2027, on a delivered ex-ship basis. Additionally, Hokkaido Gas and Santos plan to collaborate on exploring carbon sequestration and e-methane opportunities to reduce carbon emissions across their respective portfolios.

Kevin Gallagher, Santos’ managing director and chief executive officer, stated that the contract aligns with Santos’ strategy of maintaining long-term LNG pricing, highlighting the value of Santos’ high-quality LNG portfolio. He emphasised that the agreement underscores the strong demand for high heating value LNG from projects such as Barossa and PNG LNG.

“This SPA is a significant step in developing Santos’ equity LNG portfolio and establishes a long-term relationship with Hokkaido Gas, a Japanese gas utility providing natural gas within the Hokkaido region of Japan,” Gallagher said.

He added, “Our agreement with Hokkaido Gas demonstrates Santos’ commitment to providing reliable, competitive energy supplies to support our valued customers in Asia. We also look forward to working together to explore CCS and e-methane opportunities to support Japan’s and Santos’ decarbonisation targets.”

 

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