Santos has agreed key commercial terms for a 10-year LNG supply deal with POSCO Steel and separately signed a non-binding agreement to buy about 1 million tonnes per annum of LNG from Canada's proposed Ksi Lisims project for up to 20 years.
Under the proposed POSCO agreement, Santos would supply LNG on a delivered ex ship basis from its global LNG portfolio, starting in 2030 or 2031.
The transaction remains subject to negotiation and execution of an LNG Sale and Purchase Agreement and required corporate approvals.
Separately, Santos has entered into a non-binding Heads of Agreement with Western LNG and its partners to purchase about 1 Mtpa from the proposed Ksi Lisims LNG project in British Columbia.
The LNG would be purchased on a free on board basis for up to 20 years, with supplies expected to begin around 2031. The agreement remains subject to definitive agreements, including an LNG Sale and Purchase Agreement, customary conditions and corporate approvals.
The proposed purchases would allow Santos to increase LNG sales without a corresponding increase in upstream capital investment while geographically diversifying its supply base and adding flexibility to its existing LNG portfolio in Papua New Guinea and Australia.
“Ksi Lisims gives us access to a high-quality, competitive cost of supply of LNG that complements our equity production. Its location on Canada's Pacific coast, access to low-cost Western Canadian natural gas and focus on lower-emissions LNG production make it an attractive addition to our portfolio,” said Kevin Gallagher, Santos Managing Director and Chief Executive Officer.
Ksi Lisims is a proposed 12 Mtpa floating LNG export project on land owned by the Nisga'a Nation in British Columbia. It is being developed by the Nisga'a Nation, Rockies LNG and Western LNG and is designed primarily to supply Pacific Basin and Asian markets.
The project received its British Columbia Environmental Assessment Certificate in 2025 and has long-term offtake agreements with Shell, TotalEnergies and Uniper.