Australia’s Santos inks new domestic gas supply deal

For illustration purposes only (Image courtesy of Santos)

Australian LNG operator Santos has entered into a new gas supply agreement with Visy to supply wholesale gas for its New South Wales operations.

The agreement starts on 1 January 2019 and was awarded following a competitive process, according to a Santos statement released on Monday.

Santos Managing Director and CEO Kevin Gallagher said in the statement that “Santos is committed to working with Australian industry to deliver competitively priced domestic gas.”

“We’re drilling about 87 wells in the Cooper Basin this year – more wells in a single year since 2014. We’ve arrested production decline in the Cooper and production is actually growing again, which is great news for the east coast gas market,” he said.

Gallagher added that the company was also drilling a record 300 GLNG wells in Queensland.

“Since 2015, we’ve reduced our completed well costs by 50 percent in the Cooper Basin and connected well costs by a phenomenal 84 percent in Queensland, locking in our position as Australia’s lowest cost onshore gas developer,” Gallagher said.

He said that “drilling more wells and lowering production costs – extracting more gas for less money – is the best way to keep downward pressure on gas prices.”

Santos is on track to supply about 70 PJ of gas to the east coast market in 2018, which is almost 13 percent of expected demand this year, according to Gallagher.

Share this article

Follow LNG World News

Posted on September 10, 2018 with tags .


<< Oct 2019 >>
30 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3

CWC World LNG Summit & Awards Evening

The CWC World LNG Summit & Awards Evening will be returning to Rome in 2019 to celebrate it’s 20th year.

read more >

LNG Bunkering Mediterrean

The only 3-day course offering theoretical and practical training on LNG bunkering designed by the Mediterranean market leaders.   

read more >

6th Mozambique Gas Summit & Exhibit

This year’s edition will have a revamped programme for attendees.

read more >

FLNG World Congress 2019

2019 FLNG World Congress will bring together stakeholders across the floating liquefaction value…

read more >