Australia’s Santos (ASX: STO) said on Tuesday it signed a liquefied natural gas (LNG) supply agreement with POSCO Steel and a purchase agreement with Western LNG.
Santos will supply LNG to POSCO Steel on a “delivered ex ship” basis for 10 years. It will be sourced from Santos’ diversified global LNG portfolio, with supply starting in 2030 or 2031.
Santos will purchase about 1 million metric tons per annum (mtpa) of LNG from the proposed Ksi Lisims project in British Columbia, Canada, on a “free-on-board” basis.
Under the proposed deal, Santos will purchase LNG for up to 20 years, with supply commencing from around 2031.
Ksi Lisims is a proposed 12-mtpa floating LNG export project in British Columbia on land owned by the Nisga’a Nation, Santos said.
Santos Managing Director and CEO Kevin Gallagher said the agreements demonstrate the continued growth and diversification of the company’s global LNG portfolio that supports the growing energy needs of customers and partners across Asia.
Shares of the company fell 1.7% to A$8.58 by 0235 GMT, in line with the broader market .AXJO, which was last down 0.9%.
(Reporting by Sneha Kumar in Bengaluru; Editing by Subhranshu Sahu)
