Santos adds QatarEnergy Trading to its impressive list of customers
Santos signed a mid-term LNG supply contract with QatarEnergy Trading to supply approximately 0.5 million tonnes of LNG per annum over a two-year period starting in 2026. The LNG will be supplied from Santos' portfolio of world-class LNG assets on a delivered ex-ship basis.
Kevin Gallagher, Santos Managing Director and Chief Executive Officer, said the contract with QET is an 'extension of our existing strong business relationship and a great opportunity for both Santos and QET to leverage their expertise in Asian LNG markets'.
'This contract reinforces our ability to leverage our flexible LNG portfolio to achieve great outcomes for Santos and our customers. It further complements recent mid- and long-term LNG Sales and Purchase Agreements, underscoring Santos' robust LNG portfolio and strong customer relationships in the region,' Gallagher added.
'We continue to see very strong demand in Asia for high heating value LNG from projects such as Barossa and PNG LNG, as well as for reliable regional supply. Santos remains committed to supporting the energy security and emissions reduction strategies of our valued customers across Asia.'
Santos' portfolio of high-quality, tier-one customers now comprises Hokkaido Gas Company, Shizuoka Gas, TotalEnergies Gas & Power Asia Limited, Glencore Singapore, Mitsubishi Corporation, PETRONAS, KOGAS, Osaka Gas, JERA, Sinopec, CPC Corporation, and now QatarEnergy Trading.
The portfolio is around 90 per cent contracted and around 85 per cent oil-linked on average between 2025-29. Average contract pricing across the whole portfolio is estimated at around 14.7 per cent slope to Brent over 2025 to 2027.
With this, Santos continues to build a world-class portfolio of LNG business. Santos can deliver incremental margin over and above the contracted pricing by leveraging the flexibility of its equity-lifted volumes combined with its portfolio of destination supply contracts, utilising charter LNG vessels.
Last month, Santos accepted an offer from ADNOC, through its investment arm XRG, along with Abu Dhabi Development Holding Company (ADQ) and private equity firm Carlyle, for the largest all-cash corporate buyout in Australian history to acquire all it shares.
Australia's second-largest gas and energy company had earlier rejected two previous offers from the XRG consortium, but said it supports the all-cash US$18.7 billion indicative proposal. Several regulatory clearances will be required before the transaction is finalised, but if and when it does, it would be the third-largest takeover in Australian history.
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