Gallagher said the average price Santos received for selling gas on the east coast was $US7.74 a gigajoule, less than half the price it received from exporting liquified natural gas.

“We remain committed to supplying the domestic market at reasonable prices. Average realised price for east coast domestic gas for the quarter was US$7.74/GJ, less than half the average realised price for LNG.

Over 2022, Santos received on average 33 per cent higher prices for gas sold on the east coast.

Santos’ domestic gas business in WA responsible for 27 per cent of production in 2022 has had significant production cuts at both its processing plants in recent months.

The John Brookes offshore gas platform that feeds the Varanus Island processing plant and has been shut since November due to gas leaking from a subset pipeline. Santos expects to restart 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 bottom end of its guidance.

It has cut 2023 guidance to 89 to 96 million barrels, down from 91 to 98 million barrels, citing lost production from John Brookes and a resultant delay in bringing the Spartan filed that also supplies Varanus Island into production.

Santos shares were down 15 cents or two per cent to $7.21 a share in late morning trading.

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