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UPDATE 1-Santos diverts some gas from export to shore up Australian market

Published 07/09/2017, 11:24 am
Updated 07/09/2017, 11:30 am
© Reuters.  UPDATE 1-Santos diverts some gas from export to shore up Australian market
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Sept 7 (Reuters) - Australia's Santos Ltd STO.AX said it would divert 30 petajoules of gas from its Gladstone LNG export plant to customers on the country's east coast over the next two years, hoping to avert curbs on liquefied natural gas (LNG) exports.

Shares of the company rose as much as 1 percent to A$3.94 in early trade on Thursday, its highest since Feb. 24.

Australia is on track to become the world's biggest LNG exporter by 2019, straining supplies in the domestic market and driving up gas and power prices.

To help ease soaring energy prices, the government has put in place a controversial measure to curb LNG exports from the east coast if it deems there is likely to be a shortfall of domestic gas supply in any year.

Santos said its Gladstone LNG partners had agreed to divert 30 petajoules (PJ) of gas to the local market. announcement follows Santos' deals to deliver up to 72 petajoules of gas over four years into the southeastern market through a swap agreement and the sale of 15 petajoules to the Pelican Point Power Station in South Australia.

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