Australia's Santos signs LNG deal with TotalEnergies

Santos, an Australian gas supplier, announced on Wednesday it had signed a contract for a midterm supply of liquefied gas with TotalEnergies Singapore.

Santos said that under the contract which lasts a little more than three years it will provide 20 LNG cargoes or about 500,000 tons of LNG each year.

The contract is expected to begin in the fourth quarter 2025. Santos will provide the LNG delivered ex-ship basis (DES) to TotalEnergies Gas & Power Asia.

Kevin Gallagher, Santos Managing Director and Chief Executive Officer, said that the oil-indexed contract along with the long-term LNG purchase and sales agreement recently signed with Hokkaido Gas, Japan, and mid-term contract with Glencore demonstrate Santos’ strong LNG portfolio and customer relationships.

Our portfolio is well-balanced over the short and medium term, with around 80 per cent of volumes index to oil prices and around 20 per cent exposed to spot pricing.

Santos signed an LNG supply agreement with Glencore Singapore early in September and a 10-year contract to supply Japan's Hokkaido Gas starting 2027.

(source: Reuters)