Australian independent Santos has signed a 3 ¼-year LNG supply agreement on a des basis with the Asian division of TotalEnergies, commencing in October-December 2025.
The deal involves the supply of a total of 20 cargoes or about 500,000 t/yr of LNG from across its portfolio, Santos said on 2 October.
The agreement is the firm's first LNG contract with TotalEnergies, chief executive Kevin Gallagher said, with the oil-indexed contract complementing recent deals with Japanese utility Hokkaido Gas and trading firm Glencore, balancing its short and medium term portfolio with an 80:20 split of oil-linked volumes and spot prices.
Santos plans to bring its $4.6bn Barossa field in the Timor Sea on line in July-September 2025, with the project nearing 80pc completion and the third well recently drilled. The $596mn life extension for the 3.7mn t/yr Darwin LNG is now 50pc complete, executive vice president Vince Santostefano said in the Seaaoc 2024 event in Darwin on 19 September.
TotalEnergies holds a 37.55pc stake in the 5.6mn t/yr Papua LNG in Papua New Guinea and is the operator of the complex, with ExxonMobil controlling 37.04pc, Santos holding 22.83pc and Japanese upstream company JX Nippon holding 2.58pc.
Santos expects a final investment decision to be taken in late 2025 for the Papua LNG project, which has faced postponement because of issues with its engineering, procurement and construction contracts.
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