Australian LNG player Santos has signed a deal with Engie to supply natural gas to the Pelican Point power station, supporting the South Australia’s energy needs.
Under the agreement, Santos will deliver 15 petajoules (PJ) of natural gas, starting in January 2018, from Gladstone LNG and its portfolio gas, the company said in its statement.
Commenting on the agreement, Santos managing director and CEO, Kevin Gallagher, said that energy security for South Australia was a priority, following the Australian Energy Market Operator (AEMO) report’s note that the “resumption of full service of Pelican Point Power Station as critical to supporting South Australia’s electricity needs.”
He added the company worked with its Gladstone LNG project partners, Petronas, Total and Kogas, to reach a positive outcome.
Santos added that in the coming months, it will sign further domestic supply contracts to support the federal government’s efforts to secure energy supply.