Santos to proceed with gas tie-in project in Papua New Guinea

• The project has a production capacity of 135 million standard cubic feet per day and is being developed in partnership with ExxonMobil PNG, ENEOS Xplora, Kumul Petroleum, and Mineral Resources Development
• The facility is expected to have a roughly 12-year production plateau with potential to continue output beyond 2050, supporting Santos' long-term production profile
• Santos is now progressing detailed design for facility modifications, awarding two main construction contracts, and developing a temporary construction camp to meet the Q2 2028 target

Summary:

Australian energy producer Santos announced Tuesday it will proceed with the Agogo tie-in project in Papua New Guinea following approval from the PNG LNG joint venture, where Santos holds a 39.9% stake.

Key Project Details:

The project will construct a 19-kilometer pipeline connecting Santos' Agogo production facility to the existing PNG LNG gas pipeline. First gas production is targeted for Q2 2028. The facility has a production capacity of 135 million standard cubic feet per day, with Santos entitled to its proportional share based on its ownership stake.

Partnership and Participants:

The project is being developed in partnership with ExxonMobil PNG, ENEOS Xplora, Kumul Petroleum, and Mineral Resources Development.

Strategic Significance:

CEO Kevin Gallagher emphasized the project will support Santos' long-term production profile, featuring a roughly 12-year production plateau with potential to continue operations beyond 2050. This represents a significant addition to Santos' asset base and production outlook.

Next Steps:

According to Brett Darley, Santos Australia and PNG Chief Operating Officer, the company's immediate focus includes progressing detailed facility design, awarding two main construction contracts, and developing a temporary construction camp to meet the Q2 2028 first gas timeline.

Market Implications:

The approval strengthens Santos' position in the Asia-Pacific LNG market and demonstrates continued investment in natural gas infrastructure despite global energy transition pressures. The long production timeline extending potentially past 2050 signals Santos' confidence in sustained natural gas demand in the region.