Australia’s Santos inks new domestic gas supply deal with Yara

Australian LNG player Santos said it has signed a new domestic natural gas supply deal with a unit of Norwegian chemical company Yara.

Under the deal with Yara Pilbara Fertilisers, Santos will supply natural gas to Yara’s liquid ammonia plant on the Burrup Peninsula in Western Australia.

The plant is one of the world’s largest ammonia production facilities, with a production capability of about 850,000 metric tons annually, according to Yara’s website.

Santos said in a statement it would deliver over 120 petajoules of natural gas over five years, starting at the completion of its current agreement with Yara in 2023.

In addition to the gas supply agreement, Santos and Yara will also work together to explore decarbonization opportunities in Western Australia, including carbon capture and storage.

Kevin Gallagher, CEO of Santos, said the firm continues to support Western Australian industry through the delivery of “competitively priced” domestic natural gas.

He said the deal reinforces the company’s position as WA’s biggest supplier of domestic gas to the local market.

“Santos supplies around 40 percent of the State’s total domestic demand, and we are committed to ongoing investment in developing new gas supplies in WA,” Gallagher said.

Santos is now a larger company following the completion of its merger with PNG-focused Oil Search in December last year.

The company’s core business includes Darwin LNG and Barossa project, as well as the PNG LNG and GLNG facilities.

Most Popular

Venture Global’s Plaquemines LNG seals new gas supply deal

Venture Global LNG’s Plaquemines LNG has signed a new natural gas sale and purchase deal with gas marketer Tenaska Marketing Ventures, according to a DOE filing.

Shell takes FID on Egypt gas project

A unit of UK-based LNG giant Shell has taken the final investment decision for the development of the Mina West gas discovery in Egypt’s Mediterranean Sea.

TotalEnergies working on Mozambique LNG restart, CEO says

France's TotalEnergies and its partners in the giant Mozambique LNG project are still working with the Mozambique government on restarting construction on the 12.8 mtpa project, according to Patrick Pouyanne, CEO of TotalEnergies.

More News Like This

Santos says Barossa project 97 percent complete

The Barossa gas project, which will supply feed gas to the Santos-operated Darwin LNG plant, is 97 percent complete and remains on target for first production in the third quarter of 2025, according to Australia's Santos.

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.