Invasion of Ukraine propels gas giant Santos to record year

Gallagher said the average price Santos received for selling gas on the East Coast was $7.74 per gigajoule, less than half the revenue it earned from exporting liquefied natural gas.

“We remain committed to supplying the domestic market at reasonable prices. The average realized price for East Coast domestic gas for the quarter was $7.74/GJ, less than half the average realized price for LNG.

Over the course of 2022, Santos received an average of 33 percent higher prices for gas sold on the East Coast.

Santos’ domestic gas business in WA, responsible for 27 percent of production in 2022, has seen significant production cuts at its two processing plants in recent months.

The John Brookes offshore gas platform, which feeds the processing facility on Varanus Island, has been closed since November due to gas spills from a portion of the pipeline. Santos expects to resume production in late January or early February.

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Santos’ 2022 production of 103.2 million barrels of oil equivalent was at the low end of its forecast.

It has lowered its 2023 guidance to 89-96 million barrels from 91-98 million barrels, citing the loss of production at John Brookes and a resulting delay in starting the Spartan application, which also supplies Varanus Island.

Santos shares fell 15 cents, or two percent, to $7.21 a share in late morning trading.

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