Under the three year agreement (with an option to extend for a further year), which takes effect in January 2018, Santos will take delivery of gas at Wallumbilla. Santos will then provide an equivalent quantity of gas at delivery points in the southern domestic market.
Santos Managing Director and Chief Executive Officer Kevin Gallagher said he was delighted Santos had been able to facilitate additional gas supply into the southern domestic market.
"This transaction demonstrates the ability for industry to efficiently work together and support the Federal Government in bringing more supply into the domestic market and help mitigate gas supply concerns," Mr Gallagher said.
"Santos will continue to proactively pursue transactions that capture value for our shareholders and extend our long and proud history of delivering competitive wholesale gas supply to east coast domestic gas market end users."
"We want to continue to be the leader in delivering a more reliable, affordable and cleaner energy solution to Australian homes and businesses, and that means not only accessing more gas but using our Moomba infrastructure and pipeline capacity positions to assist its delivery."
About Santos Limited
Santos (ASX:STO) is one of the leading independent oil and gas producers in the Asia-Pacific region, supplying the energy needs of homes, businesses and major industries across Australia and Asia.
With its origins in the Cooper Basin, Santos has one of the largest exploration and production acreages in Australia and extensive infrastructure and is committed to supplying the domestic markets, unlocking resources and driving value and performance.
Underpinned by a portfolio of high-quality liquefied natural gas (LNG), pipeline gas and oil assets, Santos seeks to deliver long-term value to shareholders.
Santos' foundations are based on safe, sustainable operations and working together with our shareholders, host communities, governments and business partners.