Santos Secures Long-Term LNG Deals with POSCO Steel and Ksi Lisims

Santos, an Australian energy producer listed on the ASX, has signed two long-term liquefied natural gas (LNG) agreements. The first is with POSCO Steel, a South Korean steelmaker, for the supply of LNG on a 'delivered ex ship' basis. This means Santos assumes transport and risk until the cargo reaches the buyer's discharge port.

The agreement with POSCO Steel has no specified duration, but deliveries are expected to begin within two years. The gas will come from Santos' global LNG portfolio, though the precise origin was not detailed. This move fits into a broader push by South Korean industrial groups to secure gas supply.

The second agreement is a purchase commitment with the Ksi Lisims project, a floating LNG export facility in British Columbia, Canada. The duration of this agreement is also described as long-term, but the exact contractual status is unclear. Santos will take charge of transport from the moment cargo is loaded onto the vessel under a 'free on board' basis.

Santos' Managing Director and Chief Executive Officer, Kevin Gallagher, stated that these agreements demonstrate the growth of the company's global LNG portfolio against rising energy demand in Asia.