Santos to buy gas from Origin for GLNG

SANTOS has struck a deal with Origin Energy to buy gas to supply the Gladstone liquefied natural gas (GLNG) project in Queensland.

Origin will supply 100 petajoules (PJ) of gas over five years from January 2016, and could supply additional volumes of up to 94 PJ of gas during the same period.

The agreement adds to existing agreements for the supply of 750 PJ of Santos portfolio gas to GLNG over 15 years, and 365 PJ of Origin gas over 10 years.

Santos has a 30 per cent interest in GLNG, alongside joint venture partners Petronas, Total and KOGAS.

Santos shares were up 35 cents at $14.08 at 1508 AEDT, and Origin shares were up 22 cents at $13.58.

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