Santos announced the signing of a binding long-term LNG Supply and Purchase Agreement (SPA) with Hokkaido Gas Co., Ltd. to provide LNG from Santos’ portfolio of world-class LNG assets.

The long-term SPA will supply up to approximately 0.4 million tonnes per annum of LNG for 10 years, commencing in 2027, from Santos’ LNG portfolio on a delivered ex-ship basis.

Hokkaido Gas and Santos also intend to collaborate to explore carbon sequestration and e-methane opportunities to reduce carbon emissions across their respective portfolios.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said the contract is consistent with Santos’ strategy of maintaining long-term LNG pricing and demonstrates the value of Santos’ high-quality LNG portfolio. This agreement further demonstrates 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.”

“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,” Mr Gallagher said.