Leading oil and gas producer Santos recently announced that it has signed a location swap agreement which will facilitate the delivery of gas into Australia’s southern domestic market.
“The 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 Managing Director and Chief Executive Officer Kevin Gallagher.
The three-year agreement, which takes effect in January 2018 and carries an optional one-year extension, allows Santos take delivery of at least 18 petajoules of gas per annum at Wallumbilla in Queensland. The company will also provide an equivalent quantity of gas at delivery points in the southern domestic market.
Further, Kevin Gallagher said that the company 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.
“We want to continue to be the leader in delivering a more reliable, affordable and cleaner energy solution to Australian homes and businesses, and that means not only accessing more gas but using our Moomba infrastructure and pipeline capacity positions to assist its delivery,” he concluded.