Santos (ASX:STO) inks 10-year LNG deal with Mitsubishi

Company News

by Anna Napoli

Santos (ASX:STO) has inked a 10-year agreement to sell liquefied natural gas (LNG) to a unit of Japan's Mitsubishi Corp from its Barossa project.

The agreement with Diamond Gas International is a contractual commitment for the sale of 1.5 million tonnes a year of Santos equity LNG from Barossa - with extension options - at a price based on the Platts Japan Korea Marker.

Santos chief executive officer Kevin Gallagher said the agreement was another step towards a final investment decision on Barossa, which is targeted for the first half of 2021.

Santos holds a 62.5 per cent operated interest in the Barossa joint venture.

Shares in Santos (ASX:STO) Shares are trading 2.28 per cent higher at $6.50