Santos signs LNG supply deal with TotalEnergies

ADELAIDE, October 3, 2024 – Australian oil and gas E&P company Santos has signed a medium-term agreement to supply LNG to TotalEnergies Gas & Power Asia, Santos announced on Wednesday.

The terms of the contract call for Santos to deliver 20 cargoes of LNG, or up to 500,000 tonnes per year, over a period of three years plus one quarter, starting in Q4 2025. Volumes will be sourced from Santos’s global portfolio on a delivered ex-ship basis.

Similar to the long-term supply arrangements recently signed by Santos with Japan’s Hokkaido Gas and global commodities firm Glencore, the contract will be oil-indexed. Santos noted that approximately 80% of its supply portfolio is indexed, with the remaining 20% exposed to spot pricing.

“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,” said Santos’s managing director and CEO Kevin Gallagher.

Santos has three gas and liquids businesses focused on Asian markets: an integrated project in Papua New Guinea; Gladstone LNG in Australia, in partnership with Petronas, TotalEnergies and Kogas; and the Bayu-Undan and Barossa developments in Timor-Leste and northern Australia, respectively, which feed Santos’s liquefaction facility in Darwin.

Photo of Gladstone LNG courtesy of Santos

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