Santos Limited Extended Gas Processing Agreements with Senex Energy and Beach Energy

Australian natural gas company, Santos Limited (ASX: STO) has executed gas processing agreement extensions with Beach Energy and Senex Energy for gas processing and related gas-liquid purchases at its Moomba gas facilities which are located in South Australia’s Cooper Basin.

Santos has been safely and sustainably developing oil and natural gas from the Cooper Basin for more than 50 years, and its Moomba gas facilities are a critical hub in eastern Australia’s gas processing and transportation network. The extension of gas processing agreements with Senex Energy and Beach Energy has reaffirmed the strategic significance of Moomba gas plant which provides access to the east coast domestic gas market for other gas producers.

These extensions are expected to result in the production of up to 18 Terajoules of sales gas per day, or 20 Perajoules over the three-year term representing more than 1 percent of total east coast domestic gas demand as forecast by the ACCC (Australian Competition and Consumer Commission). In 2018, the company supplied around 70 Petajoules of natural gas to the east coast domestic market which was approximately 3% of the ACCC’s (Australian Competition and Consumer Commission) expected demand.  By extending these gas processing agreements of Sensex and Beach, the company has taken a significant step forward in its strategy of leveraging its existing infrastructure to facilitate more gas supply in the east cost domestic market.

In October 2018, oil & gas exploration company, Real Energy Corporation Limited also executed binding agreements with Santos Limited for gas processing at Moomba, and gas transportation and tie-in at Mount Howitt. Further in November 2018, Santos took a major step forward in its strategy of becoming Australia’s leading domestic natural gas supplier by completing the acquisition of Quadrant Energy for US$1.93 billion.

Today (i.e., 11 January 2019), the company also announced that it has extended its Cooper Basin crane operations contract with South Australian business Max Cranes. Max Cranes is a South Australian owned and managed crane provider, based in Port Augusta and as per the company Santos’ CEO Mr. Kevin Gallagher Max Cranes has been a very reliable and competent contractor in the Cooper Basin for years.

This contract extension is also essential for Max Crane as this partnership with Santos plays a crucial part in Max Crane’s organizational innovation. Further, this relationship with Santos also supports the employment of Max Crane’s highly skilled and dedicated workforce.

In the September quarter, Santos’ sales revenue increased by 10% to $973 million. As at 30 September 2018, the company had cash and cash equivalents of $1.8bn.

Meanwhile, in the last six months, the share price of STO declined by 7.58 percent as on 10 January 2019. STO’s shares traded at $5.840 (-0.171% intraday) with a market capitalization of circa $12.19 billion as on 11 January 2019 (AEST 4:00 PM). It has a 52-week high price of $7.480, with an average traded volume of nearly 6,345,163.


This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK