Santos Ltd. has signed a mid-term liquefied pure fuel (LNG) provide contract with TotalEnergies Gasoline & Energy Asia Non-public Restricted.
The contract is to produce 20 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 the LNG to be provided from the corporate’s international portfolio of LNG belongings on a delivered ex-ship foundation.
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In keeping with the discharge, Santos Managing Director and CEO Kevin Gallagher mentioned the contract with TotalEnergies is a brand new LNG relationship for Santos and builds on its present three way partnership partnerships.
“This oil-indexed contract, together with the lately executed long-term LNG Gross sales and Buy Settlement with Hokkaido Gasoline in Japan, and the mid-term contract with Glencore, demonstrates Santos’ sturdy LNG portfolio place and buyer relationships within the area. Our portfolio is properly balanced over the brief to medium time period with round eighty p.c of volumes listed to grease value and round twenty p.c uncovered to identify pricing,” Gallagher mentioned.
“There continues to be extraordinarily sturdy demand in Asia for top heating worth LNG from tasks resembling Barossa and PNG LNG as international locations deal with lowering their carbon emissions. Santos is dedicated to supporting the power safety of our valued clients throughout Asia, the place fuel will play a vital function in decarbonization efforts throughout the area,” Gallagher added.
Final month, Santos signed a mid-term LNG provide contract with Glencore Singapore Pte Ltd. 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.
The Glencore contract will start within the fourth quarter of 2025 with LNG being provided from Santos’ international portfolio of LNG belongings on a delivered ex-ship foundation.
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 might be provided by way of the SPA from Santos’s LNG portfolio on a delivered ex-ship foundation, based on 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.
Refinancing of Debt Facility
In the meantime, Santos has executed documentation to refinance its 2025 maturing syndicated financial institution mortgage facility from $250 million to $850 million.
The ability represents a completely revolving mortgage maturing in January 2030, refinancing the earlier facility that had a maturity date of August 2025. The mortgage bears a floating rate of interest over the Secured In a single day Funding Price (SOFR) with a margin that references Santos’ exterior credit standing, at the moment 1.55 p.c each year for the 5.5-year facility.
Gallagher mentioned the syndicated amenities had been “in keeping with the corporate’s technique of securing versatile and competitively priced funding whereas offering extra liquidity and strengthening the stability sheet,” based on a separate assertion.
“The amenities are totally revolving, which offers important flexibility and decrease borrowing prices when not drawn,” he famous.
To contact the creator, e-mail rocky.teodoro@rigzone.com
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