September 09, 2024 [Yahoo Finance]- Australian oil and gas producer Santos has signed a contract with Glencore Singapore for the supply of LNG cargoes.

The mid-term agreement outlines the supply of LNG cargoes equivalent to up to approximately 500,000tpa over a three-year period, starting from the fourth quarter of 2025.

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

Santos managing director and CEO Kevin Gallagher said the LNG contract with Glencore marks an extension of their existing business relationship. It also marks an opportunity for both Santos and Glencore to leverage their expertise in Asian LNG markets.

Gallagher added: “This oil-indexed contract along with the recently executed long-term LNG sales and purchase agreement with Hokkaido Gas in Japan demonstrates Santos’ strong LNG portfolio position and customer relationships in the region.

“There continues to be extremely strong demand in Asia for high heating value LNG from projects such as Barossa and PNG LNG. Santos is committed to supporting the energy security of our valued customers across Asia.”

In May 2024, Santos signed a long-term LNG supply and purchase agreement (SPA) with Japan’s Hokkaido Gas.

Set to commence in 2027, the deal involves the annual supply of up to 400,000 tonnes of LNG over a period of ten years.

The SPA also includes a collaborative effort between the two companies to investigate carbon sequestration and e-methane projects to reduce carbon emissions across their operations.

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