Santos (ASX:STO) has advanced separate arrangements to supply liquefied natural gas (LNG) to POSCO, the core steelmaking subsidiary of POSCO Holdings (NYSE:PKX). It has also advanced the purchase of LNG from the proposed Ksi Lisims LNG Project in Canada under an agreement with Western LNG.
The Australian energy producer has agreed non-binding commercial terms to supply POSCO from its global LNG portfolio for 10 years, beginning in 2030 or 2031.
Deliveries would be made on a delivered ex ship basis, under which Santos would be responsible for transporting the LNG to the agreed destination. The proposed supply volume and pricing have not been disclosed.
Separately, Santos has signed a heads of agreement with private developer Western LNG to purchase one million tonnes of LNG annually from the proposed Ksi Lisims LNG Project in British Columbia, Canada.
The arrangement covers a term of up to 20 years, with supply expected to begin around 2031. Purchases would be made on a free-on-board basis, meaning Santos would assume responsibility for the cargo at the loading port.
The Western LNG agreement remains subject to the parties completing a binding sale and purchase agreement.
Ksi Lisims is planned as a 12-million-tonne-per-annum floating LNG export facility on land owned by the Nisga’a Nation. The project has not yet reached a final investment decision.
Santos CEO Kevin Gallagher says the two arrangements support the company’s plans to expand and diversify its LNG portfolio across the Asia-Pacific region.
“Our recent agreements reflect the strength of our portfolio, our reputation for reliability, our ability to meet evolving customer needs and our commitment to delivering energy security for Australia’s neighbours in Asia,” Gallagher says.
Santos is an Australian oil and gas producer with interests in the GLNG, PNG LNG, and Darwin LNG operations.
Write to France Pinzon at Mining.com.au
Images: Santos
