Energy giant Santos has struck a 10-year deal to sell super-chilled liquefied gas to Japan, underscoring what the company argues is the Asian nation’s long-term appetite for imported gas even as the world tackles climate change.
“Japan wants diversity of supply but, realistically, needs to take a lot of LNG from Australia as most supply originating in … the US are subject to greater shipping costs, and Russia and Mozambique supply is no longer reliable.”Under the long-term contract, Santos will provide Hokkaido Gas with 400,000 tonnes of LNG – gas that is super-chilled to the point it becomes a liquid so it can be transported on specialised ships – each year for 10 years from 2027.
The deal also commits the two companies to collaborate on exploring carbon sequestration and e-methane opportunities to reduce emissions across their respective businesses.
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