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Under the gas supply deal, which follows an agreement of key terms signed in February this year, Santos will supply 200 PJ of domestic gas for the South Australian strategic gas reserve for ten year starting from March 1, 2030.
According to Santos, the first gas from March 1, 2030, coincides with the expiry of its Horizon contract with the GLNG joint venture.
Moreover, the company said that this GSA will support the long-term future of the Cooper Basin central fields near Moomba in South Australia.
These fields contain more than 50 percent of the remaining 2P reserves in the Cooper Basin.
In March this year, Santos and its joint venture partner Beach Energy took a final investment decision to proceed with the Moomba Central Optimisation (MCO) project, which will unlock the full productivity of the fields, and reduce unit production cost and carbon emissions.
The prepayment structure of the GSA will directly support Santos’ capex investment in the MCO project, which is planned to be delivered over three years, the firm said.
The MCO project will replace seven ageing gas-driven compressor stations with one electric-driven compressor station that will debottleneck upstream infrastructure.
At the Moomba gas plant, new inlet compression and additional power generation capacity will be installed to receive gas and power the upstream satellite.
This will enable the central fields to be operated remotely, with operations support provided from the Moomba operating center.