Australian energy company Santos has entered into a mid-term contract to supply LNG to TotalEnergies Gas & Power Asia, a Singapore-based subsidiary of TotalEnergies.
The agreement, spanning just over three years, will see Santos deliver 20 LNG cargoes annually, amounting to roughly 500,000tpa.
The contract is set to commence in the fourth quarter of 2025 (Q4 2025), with Santos supplying LNG on a delivered ex-ship (DES) basis.
Santos managing director and CEO Kevin Gallagher said: “This oil indexed contract, along with the recently executed long-term LNG sales and purchase agreement with Hokkaido Gas in Japan, and the mid-term contract with Glencore, demonstrates Santos’ strong LNG portfolio position and customer relationships in the region.
“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. 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.”
This deal follows closely on the heels of a similar agreement Santos signed last month with Glencore Singapore, which also involves the supply of LNG cargoes equivalent to up to approximately 500,000 tonnes annually over a three-year period starting from Q4 2025.
These LNG supply deals coincide with the company finalising a sale and purchase deed for the transfer of a 16% interest in the Bayu-Undan upstream project to TIMOR GAP.
This move allows TIMOR GAP, the national oil and gas company of Timor-Leste, to gain a stake in the Bayu-Undan joint venture (JV) and partake in the project's remaining economic life.
Situated around 500km north-west of Darwin, the Bayu-Undan field is a substantial offshore petroleum resource with associated production and processing facilities located in Timor-Leste.
Looking ahead, Santos is exploring opportunities to collaborate with Timor-Leste and the JV partners to repurpose the Bayu-Undan site into a commercial carbon capture and storage project, which would be initiated after the cessation of petroleum production.
