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Santos to redirect gas to South Australian economy

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Santos has announced that it has signed an agreement with ENGIE for the provision of gas to the Pelican Point Power Station, which will help to support South Australia’s energy requirements.

The contract is for 15 PJ, and will commence in January next year. It will be met with a combination of Santos portfolio gas and GLNG gas.

Kevin Gallagher, the Managing Director and CEO, said that South Australia’s energy security was a priority, and that the agreement illustrated the company’s willingness to work with its GLNG partners (Santos, Petronas, Total and Kogas) to achieve a positive outcome. In its report published in June 2017, the Australian Energy Market Operator (AEMO) noted that the resumption to full service of the Pelican Point Power Station is crucial to supporting the region’s electricity requirements.

Gallagher said: “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.

“This agreement demonstrates that Santos is delivering for Australians, and that natural gas has a crucial role to play if 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.

In the next few months, Santos claims that it will announce additional domestic supply contracts to support the Federal Government’s efforts to deliver affordable and reliable energy to both industry and households.

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