Natural gas supplier Santos Ltd
(ASX:STO) has signed a Gas Sale and Purchase Agreement with Wesfarmers Ltd
(ASX:WES) for the supply of up to 60 petajoules of gas over more than five years.
The company says the gas will be sourced from the John Brookes gas field offshore Western Australia and processed at the Varanus Island gas hub.
Santos says this contract will be solely supplied from its share of John Brookes production with supply scheduled to commence in the second half of 2010.
The gas supplier has a 45% non-operating interest in the John Brookes gas field, with operator Apache Energy holding the other 55% stake.
Wesfarmers, who extracts liquefied natural gas from the Dampier to Bunbury transmission pipeline, is to purchase the gas to replace energy content it takes from the pipeline to ensure the fulfillment of gas supply to other pipeline users.
Santos says this agreement further enhances the company’s position in the domestic market.
For the 2009 calendar year Santos booked a profit of $434 million.
