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    Santos extends gas supply deal with Australian brickmaker


The new 11-year contract will start in January 2025.

by: Shardul Sharma

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Natural Gas & LNG News, Asia/Oceania, Security of Supply, Corporate, News By Country, Australia

Santos extends gas supply deal with Australian brickmaker

Santos has agreed on binding terms to extend its current gas supply agreement with Australian brickmaker Brickworks, with the new long-term agreement starting January 2025 for another 11 years, it said on November 29.

Santos CEO Kevin Gallagher said the deal would see the company supplying up to 35 petajoules of natural gas to Brickworks at CPI-linked price for 11 years from 2025, with an option to further extend the contract.

"The deal is important to Santos because it provides long-term cash flows that will support our ability to fund future drilling and development in the Cooper Basin, Eastern Queensland, and at Narrabri, which will bring desperately needed new gas supplies to the east coast domestic market,” Gallagher said.

“The deal provides critical energy security to Brickworks and the broader construction industry because it has no technically or economically feasible option on the horizon for electrification or conversion to zero-emission fuels such as hydrogen, so that without gas these products would not be able to be manufactured here in Australia,” he added.