Santos and TotalEnergies Gas & Power Asia have signed a new mid-term liquified natural gas (LNG) supply contract.
The contract includes the supply of 20 LNG cargoes, or up to 0.5 million tonnes of LNG per annum over three years.
Commencing in the fourth quarter of 2025, the LNG will be supplied from Santos’ global portfolio of LNG assets, including the PNG LNG Project, on a delivered ex-ship basis.
“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,” Santos managing director and chief executive officer Kevin Gallagher said.
“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.”
The PNG LNG Project is a project has been hailed as transformational for the country.
The project, located 20km northwest of Port Moresby, has brought in K26.3 billion (approximately $10.2 billion) in economic benefits to PNG since it first began exporting gas in 2014.
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