Australia’s oil and gas player Santos has signed a liquefied natural gas (LNG) supply agreement with QatarEnergy’s LNG trading arm, QatarEnergy Trading.
The contract entails the delivery of around 0.5 million tonnes per annum (mtpa) of LNG over two years from 2026. The volumes will be supplied from Santos’ portfolio on a delivered ex-ship basis.
“This contract reinforces our ability to leverage our flexible LNG portfolio to achieve great outcomes for Santos and our customers. It further complements recent mid-and long-term LNG Sales and Purchase Agreements, underscoring Santos’ robust LNG portfolio and strong customer relationships in the region,” said Santos’ Managing Director and Chief Executive Officer, Kevin Gallagher .
“We continue to see very strong demand in Asia for high heating value LNG from projects such as Barossa and PNG LNG, as well as for reliable regional supply. Santos remains committed to supporting the energy security and emissions reduction strategies of our valued customers across Asia.”
Gallagher described the contract with the Qatari firm as an extension of his company’s existing strong business relationship and a great opportunity for both companies to leverage their expertise in Asian LNG markets.
According to Santos, its portfolio is around 90% contracted and around 85% oil-linked on average between 2025-29.
The Australian firm recently started negotiations with another Middle Eastern giant, ADNOC and partners, over its possible takeover by a consortium led by the latter’s subsidiary, XRG. The deal was announced in mid-June.
Santos also welcomed a floating production storage and offloading (FPSO) unit , BW Opal, that will work on its Barossa LNG project.