Australia's Santos signs LNG deal with QatarEnergy unit

Santos, an Australian oil and natural gas producer, announced on Friday that it had signed a long-term contract for the supply of liquefied gas with QatarEnergy Trading. This is a unit owned by QatarEnergy which is the largest LNG exporter in the world.

Santos has agreed to supply 0.5million tonnes of LNG annually over a two-year period starting in 2026. In a statement, the company said that it would supply the commodity from its wide portfolio of LNG assets.

Qatar is the third largest liquefied gas exporter in the world after the U.S.A. and Australia.

Kevin Gallagher said that there is a strong demand for LNG with high heating values from Barossa LNG and PNG LNG projects, and for reliable regional supplies.

Santos, Australia's second largest independent gas producer, announced in June that it was making good progress towards the completion of its Barossa LNG Project.

Santos expects that the Barossa Project, along with the Pikka Phase 1 in Alaska, will deliver a 30 percent increase in production in the next 18-months compared to the year 2024.

A consortium led by Abu Dhabi National Oil Company (ADNOC), an international oil company, offered to buy Santos for $18,7 billion in cash, a bid that the latter was willing to support.

(source: Reuters)