Santos pens LNG supply deal with Glencore
Australia’s Santos on September 4 announced the signing of a mid-term LNG supply contract with Glencore Singapore, a unit of commodity trading company Glencore.
The contract is to supply 19 LNG cargoes, or up to approximately 0.5mn tonnes/year of LNG 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.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
Santos CEO Kevin Gallagher said the contract with Glencore is an extension of the company’s existing strong business relationship and a great opportunity for both Santos and Glencore to leverage their expertise in Asian LNG markets.
“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. There continues to be extremely strong demand in Asia for high heating value LNG from projects such as Barossa and PNG LNG. Santos is committed to supporting the energy security of our valued customers across Asia,” Gallagher said.
Australia’s Santos and its partners last month said that they plan to make the final investment decision (FID) on the Papua LNG project in Papua New Guinea by the end of 2025. The Papua LNG partners have selected a concept involving four electric LNG trains (e-trains) with a combined capacity of 4mn tonnes/year to be developed within the existing PNG LNG project site. Additionally, Papua LNG has secured access to up to 2mn tonnes/year of existing liquefaction capacity from PNG LNG.