Santos and its GLNG joint venture partners will supply 30 petajoules (PJ) of gas to the east coast domestic market in 2018 and 2019.
The gas, which would otherwise have been exported as LNG, is being sold to east coast customers including power companies.
Santos managing director and CEO Kevin Gallagher said 30PJ of gas could power a 228MW power station or 330,000 homes over the two-year period.
“Over the last few months, Santos has been working constructively with the federal government and our GLNG partners to supply additional gas to the east coast domestic market,” Mr Gallagher said.
“It is further proof of our readiness to work with our partners in responding to market dynamics and meeting local gas demand and I would like to thank them for their support.
“As an Australian company we are committed to improving energy reliability and affordability for all Australians, both householders and industry.”
The arrangements follow recent Santos announcements for the delivery of up to 72PJ of gas over four years into the south-east market through a swap agreement and the sale of 15PJ to the Pelican Point Power Station in South Australia.