Santos agrees 10-year LNG supply deal with POSCO Steel and non-binding agreement to purchase LNS from Ksi Lisims project

Type: Supply Agreement · Technology: Gas · Country: Australia · Announced: 2026-09-15

Santos has agreed key commercial terms for a 10-year LNG supply deal with POSCO Steel, under which Santos would supply LNG on a delivered ex ship basis from its global LNG portfolio starting in 2030 or 2031, with the transaction remaining subject to negotiation and execution of an LNG Sale and Purchase Agreement and required corporate approvals. Separately, Santos signed a non-binding Heads of Agreement with Western LNG and its partners to purchase about 1 million tonnes per annum of LNG from the proposed Ksi Lisims LNG project in British Columbia for up to 20 years, with supplies expected to begin around 2031; the agreement remains subject to definitive agreements and corporate approvals. The proposed purchases would allow Santos to increase LNG sales without a corresponding increase in upstream capital investment while geographically diversifying its supply base and adding flexibility to its existing LNG portfolio in Papua New Guinea and Australia. Kevin Gallagher, Santos Managing Director and Chief Executive Officer, stated that Ksi Lisims gives Santos access to a high-quality, competitive cost of supply of LNG that complements its equity production, noting its location on Canada's Pacific coast, access to low-cost Western Canadian natural gas, and focus on lower-emissions LNG production as attractive portfolio additions. The Ksi Lisims project, a proposed 12 Mtpa floating LNG export project on land owned by the Nisga'a Nation in British Columbia, received its British Columbia Environmental Assessment Certificate in 2025 and has long-term offtake agreements with Shell, TotalEnergies and Uniper.

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