Australia’s Santos Signs LNG Supply Agreement with QatarEnergy Trading

Australia’s prominent oil and gas player, Santos, has recently inked a significant liquefied natural gas (LNG) supply deal with QatarEnergy’s LNG trading arm, QatarEnergy Trading. This agreement marks a pivotal moment for both companies in the global LNG market.

The contract involves the delivery of approximately 0.5 million tonnes per annum (mtpa) of LNG over a two-year period starting in 2026. These volumes will be sourced from Santos’ extensive LNG portfolio and delivered on a delivered ex-ship basis.

Santos’ Managing Director and Chief Executive Officer, Kevin Gallagher, expressed his enthusiasm about the deal, stating, “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 emphasized the growing demand for high heating value LNG in Asia and highlighted the importance of reliable regional supply to meet energy security and emissions reduction goals. The partnership with QatarEnergy Trading signifies an extension of Santos’ strong business ties and presents a valuable opportunity for both companies to capitalize on their expertise in Asian LNG markets.

Santos revealed that its LNG portfolio is currently around 90% contracted and approximately 85% oil-linked on average between 2025-2029, demonstrating the company’s commitment to long-term supply agreements.

Aside from the deal with QatarEnergy Trading, Santos has been actively engaged in negotiations with ADNOC and partners for a possible takeover by a consortium led by ADNOC’s subsidiary, XRG. This potential acquisition, announced in mid-June, could further strengthen Santos’ position in the global energy market.

Moreover, Santos recently welcomed the arrival of the floating production storage and offloading (FPSO) unit, BW Opal, which will play a crucial role in the company’s Barossa LNG project, further enhancing its operational capabilities.