Santos Ditches Domestic Gas Supplies for Gladstone LNG Project

Santos, one of Australia's biggest energy companies, has vowed to stop taking gas from the domestic market for its massive export contracts at the Gladstone Liquefied Natural Gas (GLNG) project. The move comes as the federal government prepares the final stages of a domestic gas reservation scheme, which will require LNG producers to sell the equivalent of 20% of exports to the domestic market.

The GLNG project has faced criticism for driving shortfalls in the domestic market and contributing to high prices. Santos chief executive Kevin Gallagher said at an address to the National Press Club that the Gladstone project 'will not contract any third-party gas going forward.' He claimed it will meet its commitments through other means.

However, Tim Baxter, owner and founder of consultancy group Naru Research, expressed skepticism about Santos' commitment. He noted that the company had previously told investors that it saw its Australian operations as a chance to secure higher margins for shareholders.