PERTH (miningweekly.com) – Oil and gas producer Santos has entered into a new gas supply agreement with packaging specialist Visy to supply wholesale gas for its New South Wales operations.
The agreement starts on January 1, 2019 and was awarded following a competitive process.
Santos MD and CEO Kevin Gallagher said Santos is committed to working with Australian industry to deliver competitively priced domestic gas.
“We’re drilling about 87 wells in the Cooper basin this year, more wells in a single year since 2014. We’ve arrested production decline in the Cooper and production is actually growing again, which is great news for the east coast gas market.”
“We’re also drilling a record 300 Gladstone liquefied natural gas wells in Queensland.”
“Since 2015, we’ve reduced our completed well costs by 50% in the Cooper basin and connected well costs by a phenomenal 84% in Queensland, locking in our position as Australia’s lowest cost onshore gas developer,” Gallagher said.
“Drilling more wells and lowering production costs, extracting more gas for less money, is the best way to keep downward pressure on gas prices. Santos is on track to supply about 70 PJ of gas to the east coast market in 2018, which is almost 13% of expected demand this year.”