Santos signs 10-year gas supply deal with South Australia for 200 petajoules

Key Facts

In a move that strengthens Australia's gas supply security, Santos Energy has signed a formal agreement to supply 200 petajoules of natural gas to the South Australian government over 10 years, starting in 2030. The deal, which was previously announced and now executed, is part of the state's long-term supply strategy. Analysts view the agreement as providing assured future revenue for Santos, though the financial impact will not materialize until around 2030.

The agreement comes amid global gas market volatility and growing demand for gas as a transition fuel. Santos, listed on the Australian Securities Exchange, is strengthening its long-term contract portfolio. According to market data, Asian LNG spot prices stabilized at $12–14 per million British thermal units in Q2 2026, supporting the viability of long-term supply deals.

With no direct trading data for Santos shares available from pre-fetched sources, investors are watching for the company's Q2 2026 results due in August, alongside Australia's recent inflation data (4% YoY as of June 24, 2026). Speeches by Reserve Bank of Australia officials, such as Hauser's on June 24, will be key for interest rate expectations and their impact on energy sector financing costs.