Santos: 10-year term for 20PJ of gas per year

Santos: 10-year term for 20PJ of gas per year

Santos Enters 10-Year Gas Supply Agreement with Engie for 20PJ Annually

Santos Ltd. has signed a non-binding memorandum of understanding (MOU) with Engie SA to supply up to 20 petajoules (PJ) of natural gas per year from the Narrabri Gas Project for a minimum of 10 years, subject to final approvals and investment decisions. The agreement, announced on February 19, 2026, aligns with Santos' strategy to strengthen domestic gas supply in Australia's east coast market, where demand for reliable energy remains strong.

Under the terms, Santos would supply the gas to Engie, a diversified energy company focused on decarbonization, once the Narrabri Gas Project achieves final investment decision (FID) and secures regulatory approvals. The MOU also includes collaboration on decarbonization initiatives, such as Santos' Moomba phase 2 carbon capture and storage (CCS) project.

Santos CEO Kevin Gallagher emphasized the project's potential to address domestic supply constraints, noting that Narrabri gas would be sourced under strict environmental safeguards. The company has invested over A$1.5 billion in the project since acquiring it in 2011, though delays from regulatory reviews, legal appeals, and native title processes have prolonged its development. Gallagher highlighted that the project's approval by the NSW Independent Planning Commission in 2024 included stringent groundwater and environmental protections.

The Narrabri Gas Project is positioned to complement Santos' broader growth initiatives, including the Barossa LNG and Pikka phase 1 developments in Alaska, which are expected to boost production by 25–30% by 2027. The company's 2025 fourth-quarter report showed strong operational performance, with free cash flow reaching $1.8 billion annually and production rising to 87.7 mmboe.

While the MOU is non-binding, it reflects Santos' focus on leveraging its domestic assets to meet energy security demands amid global energy transition debates. The deal remains contingent on FID, a binding supply agreement, and regulatory approvals.

(https://www.santos.com/news/santos-signs-mou-with-engie-for-domestic-gas-supply-from-the-narrabri-gas-project/): Santos news releases (2025–2026)
(https://www.santos.com/news/2025-fourth-quarter-report/): Santos 2025 Fourth Quarter Report
(https://www.offshore-technology.com/news/santos-natural-gas-supply-deal-engie/): Offshore-Technology.com (February 2026)