POSCO Steel Co., Ltd. has agreed key commercial terms with Australian energy company Santos for a 10-year supply of liquefied natural gas (LNG), strengthening the steelmaker’s long-term energy supply arrangements.
Under the proposed agreement, Santos will supply LNG to POSCO on a delivered ex ship (DES) basis, with supply expected to commence in 2030 or 2031. The LNG will be sourced from Santos diversified global LNG portfolio.
The agreement remains subject to the negotiation and execution of a definitive LNG Sale and Purchase Agreement, as well as required corporate approvals.
Santos said the agreement establishes a new long-term relationship with POSCO, one of the world’s major steel manufacturers, and forms part of its strategy to optimize and diversify its global LNG portfolio while providing reliable energy supplies to customers across Asia.
POSCO is one of the world’s largest steel producers, with crude steel output of 33.2 mln tons in 2025. The company operates integrated steelworks in Pohang and Gwangyang and is investing heavily in low-carbon steelmaking technologies, including EAF and hydrogen-based iron production.