Santos Signed Ten-Year LNG Supply Deal with Japanese Utility Firm

The deal also calls for collaborative efforts to explore carbon sequestration and e-methane avenues, aimed at reducing carbon emissions.

SEATTLE (Oil Monster): Australian energy giant Santos announced that it has signed a multi-year liquefied natural gas (LNG) supply and purchase agreement (SPA) with leading Japanese gas utility firm Hokkaido Gas. The deal will secure supply of LNG to Hokkaido region of the country. The value of the deal was not disclosed.

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The long-term agreement is scheduled to commence in 2027. As per deal, a total of 0.4 million tonnes of LNG will be supplied every year for a period of ten years on a delivered ex-ship basis. The deal also calls for collaborative efforts to explore carbon sequestration and e-methane avenues, aimed at reducing carbon emissions.

Kevin Gallagher, Managing Director and Chief Executive Officer, Santos said that the SPA marks a significant step forward in developing the company’s LNG portfolio. It also tends to establish a long-term relationship with Hokkaido gas.

The agreement demonstrates the company’s commitment to provide reliable and competitive energy supplies in support of its valued customers in Asian region. The company looks forward to working together to explore carbon capture and storage (CSS) and e-methane opportunities in support of its decarbonisation targets. Furthermore, the agreement is in line with the company’s strategy to maintain long-term LNG pricing.