Santos Inked Natural Gas Supply Deal with French Utility Firm

SEATTLE (Oil Monster): Santos Ltd. announced that it has entered into a non-binding memorandum of understanding with French utility ENGIE SA towards supply of natural gas. As per the terms of the agreement, up to 20 petajoules a year of natural gas will be supplied for a period of ten years. The supply will be from the Narrabri Gas Project in New South Wales.

The French utility assured 100% of the purchase to Australia, in line with Santos’ commitment to dedicate the entire production from the project to the domestic market. The deliveries are scheduled to begin upon the successful start-up of the project.

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According to Santos, the Narrabri Gas Project is expected to supply approximately 50% of the entire gas requirements of New South Wales. The company plans to develop a total of 850 wells. However, it is yet to make a final investment decision (FID) on the project, sources said. It must be recalled that Santos has invested more than AUD 1.5 billion in the project so far. There has been delays in bringing Narrabri gas to market, on account of several factors.

Additionally, Santos and ENGIE expressed their commitment to explore decarbonisation activities through Santos’ third-party carbon management business.