Santos Bolsters Asian LNG Portfolio with POSCO Deal and Canadian Supply

Australia's Santos is expanding its liquefied natural gas (LNG) portfolio in Asia through a long-term supply deal with South Korea's POSCO and a proposed agreement to buy 1 million tonnes per year from the Ksi Lisims LNG project in Canada. The agreements, which are non-binding, aim to leverage high-value, long-term contracts and complement Santos' existing contractual commitments.

The company has agreed on key commercial terms with POSCO Steel for a ten-year supply of LNG sourced from Santos' global portfolio, starting in 2030 or 2031. Execution of the deal remains subject to negotiation and execution of an LNG sale and purchase agreement (SPA) and corporate approvals.

Santos has also entered into a non-binding heads of agreement with Western LNG for the purchase of approximately 1 million tonnes of LNG per annum from the proposed Ksi Lisims project, starting from around 2031. The HOA is subject to negotiation and execution of definitive agreements, including an SPA.

Ksi Lisims LNG is a proposed floating LNG export project located in British Columbia, designed to supply LNG primarily to Pacific Basin and Asian markets. The project uses hydroelectric power for liquefaction, supporting a lower-emissions LNG production profile.