Santos Advances LNG Deals With POSCO, Canada
Santos Advances LNG Deals With POSCO, Canada
Anonymous
Key Points
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The POSCO arrangement would be conducted on a delivered-ex-ship basis, meaning Santos would be responsible for transporting the LNG to the agreed destination; the Canadian purchases would instead be made free on board, leaving Santos responsible for the cargo from the loading port.
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Ksi Lisims LNG is designed to use hydroelectric power and is being promoted as one of the world’s lowest-emissions LNG facilities, with substantially lower lifecycle emissions than legacy LNG projects.
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The Ksi Lisims project already has sale and purchase agreements with Shell, TotalEnergies and Uniper covering 6 million tonnes per year, and its developers said they expect to complete commercialization of the planned 12-million-tonne-per-year capacity during 2026.
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Santos CEO Kevin Gallagher described the portfolio strategy as combining established relationships with major energy customers and flexible third-party supply to create value across the company’s LNG portfolio.
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Following the announcement, Santos shares traded at about A$8.58, according to Grafa; the proposed Canadian project is being developed by the Nisga’a Nation, Rockies LNG and Western LNG.
Santos, an Australian energy company, has locked in two major LNG deals that reshape its supply strategy. The company agreed to sell liquefied natural gas to South Korea's POSCO for 10 years starting around 2030 offshore-technology, while also committing to buy 1 million tonnes annually from Canada's proposed Ksi Lisims project thedeepdive. Both agreements are non-binding but signal Santos' push to diversify its LNG portfolio across Asia and North America.
POSCO Deal Taps Santos' Global Supply Network
Santos will deliver LNG to South Korea's POSCO on a delivered-ex-ship basis for 10 years starting in 2030 or 2031 mining.com.au. This arrangement means Santos covers all transport costs to the buyer's location. Specific volumes and pricing remain undisclosed. CEO Kevin Gallagher framed the strategy as blending established customer relationships with flexible third-party supply to unlock value across Santos' LNG business.
Canadian LNG Purchase Expands North American Exposure
Santos signed a heads of agreement to buy 1 million tonnes of LNG annually for up to 20 years from Ksi Lisims in British Columbia, with deliveries expected around 2031 thedeepdive. Under free-on-board terms, Santos assumes responsibility after the cargo loads at the port. The purchase still requires a binding sale and purchase agreement. Ksi Lisims has already secured 6 million tonnes annually through deals with Shell, TotalEnergies and Uniper mining.com.au.
Ksi Lisims Nears Pre-FID Sales Target With Low Emissions Focus
The 12-million-tonne-per-year Ksi Lisims project, developed by the Nisga'a Nation, Rockies LNG and Western LNG, is positioned as a low-emissions facility mining.com.au. It runs on hydroelectric power and has substantially lower lifecycle emissions than older LNG plants. Developers expect to complete commercialization of the full 12-million-tonne capacity by 2026. Santos' 1-million-tonne commitment brings the project to its lower pre-FID sales target thedeepdive.
Market Reaction and Strategic Diversification
Following the announcement, Santos shares traded at about A$8.58 ca.headtopics. The two deals reinforce Santos' strategy to diversify beyond its core Australian projects. By securing long-term Asian demand via POSCO and locking in North American supply, Santos positions itself as a flexible LNG provider across major markets. Both agreements remain subject to final approvals and binding agreements.
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