Regional LNG: Santos secures mid-term LNG supply deal with Glencore Singapore

By Romel S. Gurky

Australian oil and gas producer Santos announced on Wednesday that it has signed a mid-term agreement with Glencore Singapore to supply liquefied natural gas (LNG) cargoes amounting to up to 500,000 tonnes per annum (tpa). The deal will run for three years, starting in the fourth quarter of 2025.

The LNG will be sourced from Santos’ extensive portfolio of LNG assets and delivered on an ex-ship basis, marking a significant extension of the business relationship between Santos and Glencore. Santos CEO Kevin Gallagher emphasized that the agreement strengthens both companies' positions in the growing Asian LNG market.

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“This oil-indexed contract, alongside our recently executed long-term LNG sales agreement with Hokkaido Gas in Japan, highlights the strength of Santos’ LNG portfolio and our valuable customer relationships across the region,” Gallagher stated. He further noted the continued strong demand for high heating value LNG in Asia, particularly from projects such as Barossa and PNG LNG.

In May 2024, Santos also signed a long-term LNG supply and purchase agreement with Hokkaido Gas, which involves supplying up to 400,000 tonnes of LNG annually over ten years, starting in 2027. The deal includes a collaborative initiative to explore carbon sequestration and e-methane projects aimed at reducing carbon emissions across their operations.

Santos remains committed to supporting energy security for its customers across Asia, leveraging its LNG assets and expertise in the region, the Company said.

Editing by Alexander Ginting