Santos signs LNG supply contract with Glencore Singapore
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The news: Oil and gas producer Santos has signed a mid-term liquified natural gas (LNG) supply contract with Glencore Singapore.
The numbers: The agreement will see Santos supply 19 LNG cargoes, or up to around 0.5 million tonnes of LNG, per year over a period of three years, plus one quarter.
The contract will commence in Q4 2025 with LNG being supplied from Santos' global portfolio of LNG assets on a delivered ex-ship basis.
The context: Santos managing director and CEO Kevin Gallagher said the contract with Glencore Singapore extends the existing relationship between the two companies, and represents a "great opportunity" for both Santos and Glencore to leverage their expertise in Asian LNG markets.
What they said: "This oil-indexed contract along with the recently executed long-term LNG sales and purchase agreement with Hokkaido Gas in Japan demonstrates Santos' strong LNG portfolio position and customer relationships in the region," Gallagher said.
"There continues to be extremely strong demand in Asia for high heating value LNG from projects such as Barossa and PNG LNG," he said.
The source: ASX announcement
