Santos Diverts GLNG Gas to Domestic Market

Australian Santos has signed an agreement with French Engie in Australia for the supply of gas to the Pelican Point Power Station that will help support South Australia’s energy needs, the company said August 14.

The contract is for 15PJ, starting January 2018, and will be fulfilled with a mix of GLNG gas and Santos portfolio gas.

Santos CEO Kevin Gallagher said energy security for South Australia was a priority and the agreement demonstrated the company’s willingness to work with its GLNG partners to reach a positive outcome. The Australian Energy Market Operator (AEMO) in its report published in June 2017 identified the resumption to full service of Pelican Point Power Station as critical to supporting South Australia’s electricity needs.

“This agreement demonstrates that Santos is delivering for Australians, and that natural gas has a crucial role to play if Australia is going to have a balanced and pragmatic approach to energy policy,” he said.

“It also reflects the strong relationship we have with Engie in Australia and the important role played by our GLNG partners in reaching an energy solution,” he said.

In the coming months, Santos said it will announce further domestic supply contracts to support the federal government’s efforts to deliver affordable and reliable energy to households and industry.

Shardul Sharma