Santos Expands Asia-Pacific LNG Footprint with POSCO Deal and Canadian Supply Agreement

Santos, an Australian energy company, has strengthened its position in the Asia-Pacific liquefied natural gas (LNG) market through two key agreements. The company has finalized a decade-long LNG supply deal with South Korea's POSCO Steel and signed a non-binding heads of agreement to acquire 1 million tonnes per year from the proposed Ksi Lisims LNG project in Canada.

The deal with POSCO will see Santos deliver LNG on a delivered ex ship basis, starting in 2030 or 2031. The company has also reached key commercial terms with Western LNG for the supply of Canadian LNG, which will be sold to Asian buyers at a competitive cost. This agreement is contingent on the negotiation and execution of definitive agreements.

Ksi Lisims LNG is a proposed floating LNG export project in British Columbia, Canada, which will employ hydroelectric power for liquefaction and support lower-emissions LNG production. The project has secured long-term offtake agreements with international LNG participants, including Shell, TotalEnergies, and Uniper.

Santos' Managing Director and Chief Executive Officer, Kevin Gallagher, noted that the company's track record in forging successful relationships with leading energy customers is a key factor in its ability to generate value across its global LNG portfolio. He also highlighted the benefits of Ksi Lisims LNG, including access to high-quality, competitive cost of supply and a lower-emissions production profile.