Santos (ASX:STO) has signed a non-binding memorandum of understanding (MOU) with Engie for the supply of natural gas from the Narrabri Gas Project to the Australian east coast domestic gas market. According to the proposed transaction, Santos would supply Engie with up to 20 petajoules of natural gas per year from Narrabri. The agreement would last for at least 10 years from the commencement of operations, with 100 per cent of the supplied gas committed to the domestic market.
Santos and Engie have also committed to exploring decarbonisation activities through Santos’ third-party carbon management business, specifically via the proposed Moomba phase 2 carbon capture and storage project. Engie operates wind farms, batteries, and gas power stations in Australia, and supplies energy services to commercial and industrial customers. The company focuses on renewable energy and flexible generation to support clients in cutting emissions.
The supply of Narrabri gas is subject to several conditions. These include Santos making a final investment decision on the Narrabri Gas Project. It also requires negotiation and execution of a binding gas supply agreement, and approvals by each party.
Santos is an Australian energy company. The company supplies oil and gas across Australia and Asia.
