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Santos signs gas processing agreement extensions

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LNG Industry,

Santos has announced that it has signed binding agreement extensions with both Beach Energy and Senex for gas processing and related gas liquids purchases at the Moomba gas facilities.

According to the statement, the gas processing agreement extensions are expected to result in the production of up to 18 TJ of sales gas per day, or 20 PJ over the three-year period.

Santos states that the gas that will be produced under these agreements is equivalent to over 1% of total east coast domestic gas demand, as forecasted by the ACCC.

These extensions demonstrate the Moomba gas plant’s importance in terms of facilitating access to the east coast domestic gas market for other producers in the Cooper Basin to increase both gas supply and competition, which Santos argues is the best way to put downward pressure on gas prices for customers.

Santos claims that the agreement extensions will enable raw gas from Beach’s western flank of the Cooper Basin and gas from Senex’s Vanessa project to be processed to sales gas quality.

The Moomba facilities are operated by Santos, and are a crucial hub in eastern Australia’s gas processing and transportation network. They connect supply from a number of producers in Queensland and South Australia to southern domestic gas markets.

Naomi James, Santos Executive Vice President Midstream Infrastructure, said: “These processing agreements demonstrate the benefits of the Santos strategy to leverage our existing infrastructure to facilitate more gas supply and more competition in the east coast domestic gas market as well as continuing to build our Queensland production for both domestic customers and our LNG exports from Gladstone.”

In 2018, Santos claims that it supplied approximately 70 PJ of natural gas to the east coast domestic market, which was nearly 13% of the ACCC’s expected demand.

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