Australian vitality firm Santos had signed a long-term LNG take care of Mitsubishi Corporation’s Diamond Gas International.

Santos inks Barossa LNG deal with Mitsubishi
Courtesy of Santos

The LNG provide and buy settlement is for the availability of 1.5 million tonnes each year LNG from the Barossa challenge for a interval of 10 years, Santos mentioned in its assertion.

The deal consists of extension choices and is concluded at a worth based mostly on the Platts Japan Korea Marker (JKM).

Santos additionally has choices to pursue additional LNG transactions by way of business flexibilities negotiated with DGI.

Santos managing director and CEO Kevin Gallagher mentioned the settlement with DGI was one other vital step in direction of a remaining funding choice on Barossa, which is focused for the primary half of 2021.

“The SPA delivers a agency LNG offtake association which represents over 80 per cent of Santos’ fairness LNG quantity from the Barossa challenge at our anticipated 50 per cent curiosity stage following the beforehand introduced sell-down to JERA, whereas the JKM-indexation gives portfolio steadiness to our current oil-linked LNG offtake agreements from GLNG and PNG LNG,” Gallagher mentioned.

He added that It additionally represents the primary Santos long-term fairness LNG sale from one in all its main LNG tasks, demonstrating the advertising and marketing functionality to satisfy buyer wants available in the market.

Santos, Mitsubishi eyeing carbon-neutral Barossa LNG

In addition to the long-term SPA, Santos and Mitsubishi Corporation have signed a memorandum of understanding to collectively examine alternatives for carbon-neutral LNG from Barossa.

These embody collaborating on alternatives regarding Santos’ Moomba carbon seize and storage (CCS) challenge, the pursuit of carbon-neutral LNG, bilateral agreements for carbon credit, and potential future improvement of zero-emission hydrogen.

Santos’ Moomba CCS challenge is FID-ready and could have the capability to securely and completely retailer 1.7 million tonnes each year of CO2 deep underground in depleted pure fuel reservoirs, topic to authorities approval relating to eligibility for Australian Carbon Credit Units.

Santos at the moment holds a 62.5 per cent operated curiosity within the Barossa three way partnership together with companion SK E&S (37.5 per cent).

Santos can be a three way partnership companion and operator in Darwin LNG with a 68.four per cent curiosity.

Completion of the deliberate sell-downs to SK E&S and JERA, introduced in early 2020, will see Santos’ pursuits in Darwin LNG and the Barossa challenge change to 43. per cent and 50 per cent, respectively.

The sell-downs are topic to customary consents, regulatory approvals and FID on Barossa.

The submit Santos inks Barossa LNG take care of Mitsubishi appeared first on Offshore Energy.

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