Santos Contracts More LNG with WesCEF

Australian oil and gas producer Santos has entered into a second contract to supply gas to Wesfarmers Chemicals, Energy & Fertilisers on the country’s west coast, Santos said November 22.

Under the agreement, Santos will supply up to 34 PJ of gas to WesCEF over four years. It follows an agreement last month to supply about 28 PJ of gas to the company over three years.

Santos, which owns the Gladstone LNG terminal on Australia’s east coast, has also signed a number of gas deals for the eastern seaboard this year after the federal government threatened to curb LNG export volumes if the region’s forecast supplies were not met.

“We produce only domestic gas in [Western Australia] and it’s a business we are keen to grow, delivering affordable and reliable energy to local businesses and industry,” Santos executive vice president of marketing and trading Philip Byrne said.

“This contract also strengthens our relationship with WesCEF and highlights the quality of our client base,” he added.  

Santos has a number of domestic gas exploration and production assets in WA, including the John Brookes, Halyard/Spar and Reindeer offshore gas fields in the Carnarvon Basin and gas processing plants at Devil Creek and on Varanus Island. Export markets have paid up for LNG, pushing up gas prices at home where gas production is being limited or halted by many state governments.