Santos Bolsters Global LNG Position with POSCO and Ksi Lisims Deals

Santos is expanding its liquefied natural gas (LNG) portfolio through two new non-binding agreements. The Australian energy company has agreed on key commercial terms with POSCO Steel Co., Ltd. for a proposed 10-year LNG supply arrangement. Under the deal, Santos would deliver LNG to POSCO on a delivered ex-ship (DES) basis, with supplies expected to begin in 2030 or 2031.

The first agreement is subject to the negotiation and execution of a definitive LNG Sale and Purchase Agreement, along with customary corporate approvals. Separately, Santos has signed a non-binding Heads of Agreement with Western LNG and its partners to purchase approximately 1 million tonnes per annum (Mtpa) of LNG from the proposed Ksi Lisims LNG project in British Columbia, Canada.

The agreement could run for up to 20 years, with deliveries expected to commence around 2031. Santos would purchase the LNG on a free-on-board (FOB) basis, with the arrangement also subject to definitive agreements, including an LNG SPA and customary conditions.