Santos has secured another potential customer for its Narrabri gas project in New South Wales, with Orica agreeing to a non-binding purchase deal. Orica, a global explosives manufacturer, and Santos will negotiate the sale of up to 15 petajoules of gas per year from the Narrabri project for a term of up to 10 years.
Santos is an Australian energy company focused on exploration, development, and production of oil and gas. The Narrabri project still requires a final investment decision before construction can begin. This decision hinges on pending clearance from the Native Title Tribunal and progress on the proposed pipeline needed to transport the gas.
The agreement with Orica follows a similar memorandum of understanding signed approximately five weeks prior with French electricity supplier Engie. Santos is currently the target of a $36 billion takeover bid led by an Abu Dhabi-based group.
The deal with Orica remains subject to a final investment decision on the Narrabri project, as well as the successful completion of negotiations between the two companies.
