Own Santos shares? Here's what the company just announced

Santos shares are moving into positive territory today despite a drop off in the sector.

| More on:
Worker inspecting oil and gas pipeline.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Santos shares edge 0.86% higher to $7.02 during late afternoon trade 
  • The company announced it has acquired the Hunter Gas Pipeline 
  • This will provide a pathway to service the much needed east coast domestic market 

The Santos Ltd (ASX: STO) share price is climbing during afternoon trade on Wednesday.

This comes after the company announced an acquisition of a crucial gas pipeline to service the east coast domestic market.

At the time of writing, the energy producer's shares are up 0.86% to $7.02 apiece.

Santos procures Hunter Gas Pipeline

Investors are pushing Santos shares into positive territory despite the S&P/ASX 200 Energy (ASX: XEJ) sector shedding 0.36% today.

According to its latest release, Santos advised it has acquired a critical component for delivering gas from Northern Australia.

The Hunter Gas Pipeline owns an approved underground pipeline route from Wallumbilla in Queensland to Newcastle in New South Wales.

As this pipeline passes close to Santos' Narrabri Gas Project, management is seeking to team up with infrastructure developers to service the east coast domestic market.

Santos wants to construct the pipeline and connect it to the Wallumbilla Gas Supply Hub in the shortest timeframe possible.

The pipeline will also be designed to transport hydrogen as customer demand progresses during the energy transition.

Santos' midstream and clean fuels president Brett Woods said:

At a time when the ACCC is forecasting domestic gas shortfalls, our Narrabri project, which is 100 per cent committed to the domestic market, will inject new supply into southern domestic markets and put downward pressure on gas prices for New South Wales businesses, manufacturers and families.

It will make more gas available to cover peak demand periods, especially in circumstances where gas power generators are called on unexpectedly to replace wind, solar and coal outages, as we have seen this winter.

Woods also went on to talk about the next stage of development, adding:

Acquiring the Hunter Gas Pipeline route is an important step for the Narrabri project, with appraisal drilling planned later this year, pending various native title and environmental management plan approvals.

Once fully operational, Narrabri has the potential to deliver more than half NSW's gas demand, creating a more secure, local and affordable supply for businesses, manufacturers and families.

Santos share price snapshot

A choppy 12 months marred by volatile energy prices have led the Santos share price to register a 10% gain.

The company's shares hit a 52-week high of $8.86 on 8 June before tumbling on the back of a gloomy economic outlook.

Listed as the second biggest energy player on the ASX, Santos commands a market capitalisation of roughly $23.59 billion.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »