The contract is for 15 PJ, starting in January 2018, and will be fulfilled with a mix of GLNG gas and Santos portfolio gas.
Santos Managing Director and CEO Kevin Gallagher said energy security for South Australia was a priority and the agreement demonstrates the company’s willingness to work with its GLNG partners to reach a positive outcome.
“It also shows we are working with the Turnbull Government to deliver affordable and reliable energy to all Australians, and as a leading domestic gas producer across this country, Santos is best placed to bring energy security to Australian households and businesses,” said Mr Gallagher.
“This agreement demonstrates that Santos is delivering for Australians, and that natural gas has a crucial role to play is Australia is going to have a balanced and pragmatic approach to energy policy.
“It also reflects the strong relationship we have with ENGIE in Australia and the important role played by our GLNG partners in reaching an energy solution.”
The Australian Energy Market Operator (AEMO) identified in a report released last year that the resumption to full service for the Pelican Point Power Station was crucial to supporting South Australia’s energy needs.
The $20.5 billion GLNG project on Curtis Island, Queensland, is a joint venture between Santos (30 per cent) and PETRONAS (27.5 per cent), Total (27.5 per cent) and KOGAS (15 per cent).
Over the coming months, Santos is set to announce further domestic supply contracts to support the Federal Government’s efforts to deliver affordable and reliable energy.