Santos secures LNG supply deal with TotalEnergies
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The news: Oil and gas giant Santos has signed a mid-term deal to supply liquefied natural gas (LNG) to TotalEnergies Gas & Power Asia.
The numbers: Under the agreement, Santos will supply 20 LNG cargoes, or up to 0.5 million tonnes of LNG per annum over a period of three years plus one quarter. The contract will start in the last quarter of 2025 with the LNG being supplied from Santos’ global portfolio.
The context: Santos managing director Kevin Gallagher said the TotalEnergies oil-indexed contract is a new LNG deal and builds on the energy producer’s existing joint venture partnerships.
The company recently signed a long-term LNG deal with Japan’s Hokkaido Gas, as well as a mid-term contract with Glencore.
Gallagher said there was strong demand in Asia for high heating value LNG as countries were focused on reducing their carbon emissions.
What they said: “Our portfolio is nicely balanced over the short to medium term with around 80% of volumes indexed to oil price and around 20% exposed to spot pricing,” Gallagher said.
The source: ASX announcement
