Australian energy company Santos has announced a new mid-term liquefied natural gas (LNG) supply contract with TotalEnergies Gas & Power Asia Private Limited, marking a significant expansion of its LNG portfolio.

The agreement, set to commence in the fourth quarter of 2025, will see Santos supply 20 LNG cargoes, equivalent to approximately 0.5 million tonnes of LNG per annum, over a period of three years and one quarter.

The LNG will be sourced from Santos‘ global portfolio of assets and delivered on an ex-ship basis.

Santos Managing Director and CEO Kevin Gallagher highlighted the strategic importance of this new partnership, stating: “This oil-indexed contract demonstrates Santos’ strong LNG portfolio position and customer relationships in the region. Our portfolio is nicely balanced over the short to medium term with around 80 per cent of volumes indexed to oil price and around 20 per cent exposed to spot pricing.”

The deal with TotalEnergies follows recent agreements with Hokkaido Gas in Japan and Glencore, further solidifying Santos’ position in the Asian LNG market.

Gallagher emphasised the growing demand for high-quality LNG in Asia, stating: “There continues to be extremely strong demand in Asia for high heating value LNG from projects such as Barossa and PNG LNG as countries focus on reducing their carbon emissions.

“Santos is committed to supporting the energy security of our valued customers across Asia, where gas will play an essential role in decarbonisation efforts across the region.”

This contract underscores the increasing importance of LNG in the global energy transition, particularly in Asia where natural gas is seen as a crucial component in efforts to reduce carbon emissions while meeting growing energy demands.