Australia’s Santos in new domestic gas supply move

Australian LNG player Santos said it has purchased a company that owns an approved underground pipeline route to deliver natural gas from its planned Narrabri gas project to the domestic market.

Hunter Gas Pipeline owns a gas pipeline route from Wallumbilla in Queensland to Newcastle in New South Wales, close to Santos’ Narrabri project.

Santos said in a statement on Thursday the company’s goal is to “work with infrastructure developers and owners to construct the pipeline and deliver much-needed gas to east coast domestic markets in the shortest timeframe possible.”

In addition, Santos said it would also design the pipeline to transport hydrogen as customer demand evolves during the energy transition.

Santos’ midstream and clean fuels president, Brett Woods, said in the statement that the acquisition provides a pathway for the delivery of gas from the Narrabri project to the domestic market, subject to a short connection to the main pipeline, which is currently in the planning phase.

“At a time when the ACCC is forecasting domestic gas shortfalls, our Narrabri project will inject new supply into southern domestic markets and put downward pressure on gas prices for New South Wales businesses, manufacturers and families,” Woods said.

Once fully operational, Narrabri has the potential to deliver more than half NSW’s gas demand, according to Santos.

Subject to receiving remaining government approvals, Santos expects construction of the pipeline to start in early 2024.

Most Popular

BGN delivers its first LNG cargo to Germany, secures Egypt deal

Switzerland-based energy trader BGN has completed its first LNG delivery to Germany, while simultaneously securing a deal to supply Egypt with LNG.

Samsung Heavy wins contract for Eni’s Coral Norte FLNG

South Korean shipbuilder Samsung Heavy has secured a preliminary contract for Eni's second FLNG project in Mozambique, Coral Norte (Coral North), according to shipbuilding sources.

Excelerate’s FSRU launched in South Korea

South Korean shipbuilder HD Hyundai Heavy Industries has launched Excelerate Energy’s new floating storage and regasification unit (FSRU).

More News Like This

Santos inks LNG supply deal with QatarEnergy’s trading unit

Australian LNG player Santos has signed a mid-term LNG supply deal with QatarEnergy Trading, a unit of state-owned LNG giant QatarEnergy.

Santos enters exclusive due diligence with Adnoc-led consortium

Australian LNG player Santos has entered into a process and exclusivity agreement with a consortium led by Adnoc's investment unit, XRG, related to the latter's $18.7 billion takeover offer.

Santos: Barossa project in final stages of commissioning

The Barossa gas project, which will supply feed gas to the Santos-operated Darwin LNG plant, is now in the final stages of commissioning following the arrival of the BW Opal FPSO at the Barossa gas field.

Santos gets $18.7 billion takeover offer from Adnoc-led consortium

Australian LNG player Santos has received a takeover offer valued at $18.7 billion from a consortium led by Adnoc's investment unit XRG.