Santos signs LNG deal with TotalEnergies to supply Asian market

Global energy company Santos has signed a mid-term liquefied natural gas (LNG) contract with TotalEnergies Gas & Power Asia Private Limited (TotalEnergies).

Confirmed today (2^nd Oct), the deal will see around 0.5 million tonnes per annum of LNG, or 20 cargoes, supplied to TotalEneries from Santos over a period of just over three years.

Deliveries will begin in Q4 2025. Santos will supply the LNG from its global portfolio.

Santos Managing Director and CEO, Kevin Gallagher, said the contract represents a new LNG relationship for Santos and builds on its existing joint venture partnerships.

“Our portfolio is nicely balanced over the short to medium term, with around 80% of volumes indexed to oil price and around 20% exposed to spot pricing.”

“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.”

In September (2024), Santos signed a similar LNG supply deal in Asia with Glencore Singapore. The deal was for the same amount of LNG, over the same period.

Read more: Santos signs LBG supply deal with Glencore Singapore

Prior to that, Santos signed another supply deal with Japan’s Hokkaido Gas.

Asia’s LNG demand

Asia’s LNG demand growth is driven by economic expansion and energy transitions to cleaner sources. In 2023, China imported around 78 million tonnes of LNG, reflecting its shift from coal.

Japan also remains a significant importer post-Fukushima, relying on LNG for energy stability. South Korea imported around 46 million tonnes, moving away from coal.

India’s demand too is rising due to diversification efforts and infrastructure expansion. The IEA, Wood Mackenzie, and McKinsey project Asia’s LNG demand to increase by over 50% by 2030, highlighting the region’s importance for global LNG suppliers.