Santos Ltd. has secured a mid-term liquefied pure gasoline (LNG) provide contract with Glencore Singapore Pte Ltd.
The contract is to produce 19 LNG cargoes, or as much as roughly 0.5 million metric tons of LNG each year over a interval of three years plus one quarter, Santos mentioned in a information launch.
The contract will start within the fourth quarter of 2025 with LNG being provided from Santos’ world portfolio of world-class LNG property on a delivered ex-ship foundation.
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Santos Managing Director and CEO Kevin Gallagher mentioned that the contract with Glencore “is an extension of our present robust enterprise relationship and a fantastic alternative for each Santos and Glencore to leverage their experience in Asian LNG markets”.
“This oil-indexed contract together with the lately executed long-term LNG Gross sales and Buy Settlement with Hokkaido Gasoline in Japan demonstrates Santos’ robust LNG portfolio place and buyer relationships within the area. There continues to be extraordinarily robust demand in Asia for prime heating worth LNG from tasks comparable to Barossa and PNG LNG. Santos is dedicated to supporting the power safety of our valued prospects throughout Asia,” Gallagher added.
In Might, Santos signed a binding long-term (LNG) provide and buy settlement (SPA) with Japan-based Hokkaido Gasoline Co., Ltd. Starting in 2027, roughly 0.4 million metric tons each year of LNG for 10 years will probably be provided by way of the SPA from Santos’s LNG portfolio on a delivered ex-ship foundation, in keeping with an earlier information launch.
Hokkaido Gasoline and Santos additionally plan to collaborate and discover carbon sequestration and e-methane alternatives to scale back carbon emissions throughout their respective portfolios, in keeping with the discharge.
State-owned Agency Joins Bayu-Undan JV
In the meantime, Santos introduced that the Bayu-Undan Joint Enterprise (BUJV) has agreed on the phrases of a gross sales and buy deed below which state-owned TIMOR GAP E.P. will purchase a 16 % curiosity within the Bayu-Undan upstream challenge, efficient July 1.
The transaction is anticipated to shut in mid-September, Santos mentioned in a separate assertion. The monetary particulars weren’t disclosed.
Additional, the Manufacturing Sharing Contract (PSC) has been prolonged to June 30, 2026, which is the seventh extension up to now.
The Bayu-Undan upstream challenge includes the offshore petroleum discipline, and offshore manufacturing and processing amenities positioned in Timor-Leste. The Bayu-Undan discipline is positioned roughly 310.7 miles (500 kilometers) northwest of Darwin in Timor-Leste’s offshore waters. The three way partnership companions are Santos, SK E&S, INPEX, Eni and Tokyo Timor Sea Assets.
After the transaction, Santos will personal a 36.5 % curiosity within the challenge, SK E&S will personal 21 %, INPEX will personal 9.6 %, Eni will personal 9.2 %, and Tokyo Timor Sea Assets will personal 7.6 %.
The challenge has supplied greater than $25 billion in income for Timor-Leste over its life thus far, in keeping with the assertion. Greater than half the offshore workforce at Bayu-Undan is Timorese with the challenge at present supporting about 350 onshore and offshore jobs in Timor-Leste. Bayu-Undan continues to supply gasoline into the Australian home market by way of a Gasoline Gross sales Settlement with the Energy and Water Company of the Northern Territory, in addition to producing invaluable liquids.
Kevin Gallagher mentioned the transaction demonstrates the corporate’s dedication to a long-term partnership with Timor-Leste within the improvement of the nation’s petroleum assets.
“I’ve lengthy wished to see TIMOR GAP as a companion of Santos and I welcome them as a participant within the Bayu-Undan three way partnership,” he remarked.
Santos mentioned it stays dedicated to working with Timor-Leste and the three way partnership to repurpose Bayu-Undan into a brand new large-scale, business carbon seize and storage challenge when petroleum manufacturing ends, which might create an ongoing income, native jobs and enterprise alternatives for Timor-Leste by offering carbon administration companies to the Asian area.
To contact the writer, e-mail rocky.teodoro@rigzone.com
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