Australia’s energy giant Santos has penned a deal with TotalEnergies Gas & Power Asia Private Limited, a subsidiary of France’s TotalEnergies, to deliver shipments of liquefied natural gas (LNG) on a mid-term basis.
Under the contract, Santos will supply 20 LNG cargoes, or up to approximately 0.5 million tonnes per annum (mtpa) of LNG over three years plus one quarter on a delivered ex-ship basis. The contract is set to start in Q4 2025 with LNG originating from the Australian player’s global portfolio.
“Our portfolio is nicely balanced over the short to medium term with around eighty percent of volumes indexed to oil price and around twenty percent exposed to spot pricing,” said Kevin Gallagher, Santos’ Managing Director and Chief Executive Officer.
“There continues to be extremely strong demand in Asia for high heating value LNG from projects such as Barossa and PNG LNG as countries focus on reducing their carbon emissions. Santos is committed to supporting the energy security of our valued customers across Asia, where gas will play an essential role in decarbonisation efforts across the region.”
This follows two LNG supply deals Santos signed in the past months – a long-term one with Japan’s Hokkaido in late May and a mid-term one with Glencore from early September when the Australian player announced it would sell a 16% interest in the Bayu-Undan project to TIMOR GAP .
Meanwhile, TotalEnergies reached a final investment decision (FID) for a giant oil project in Block 58 off the coast of Suriname, deemed “historic” for the South American country. The project is set to feature an all-electric floating, production, storage, and offloading (FPSO) unit with a maximum production capacity of 220,000 barrels of oil per day, connected to a subsea network.