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Highlights

  • Santos signs a two-year LNG supply agreement with QatarEnergy Trading, starting in 2026.

  • The deal involves the supply of approximately 0.5 million tonnes of LNG per year.

  • The company’s LNG portfolio remains ~90% contracted and ~85% oil-linked for 2025–2029.

Santos Ltd (ASX:STO) saw a modest lift in its share price during Friday morning trade after announcing a new mid-term liquefied natural gas (LNG) supply agreement with QatarEnergy Trading (QET). Shares climbed 0.1% to AUD 7.71, up from AUD 7.68 at Thursday’s close, as the S&P/ASX 200 Index rose by 0.2% during the same period.

Although the announcement was labelled non-price sensitive, and reinforces Santos’ expanding reach in Asia’s energy market.

Details of the New Contract

Under the agreement, Santos will deliver approximately 500,000 tonnes of LNG annually for two years, commencing in 2026. While financial terms were not disclosed, the contract builds on the existing commercial relationship between Santos and QatarEnergy Trading and reflects mutual efforts to meet growing LNG demand in Asia.

Santos’ CEO Kevin Gallagher said the agreement highlights the company’s ability to optimise its LNG portfolio and enhance value for both customers and shareholders.

“This contract reinforces our ability to leverage our flexible LNG portfolio to achieve great outcomes for Santos and our customers,” Gallagher stated.

He added that the deal complements recent LNG sales agreements.

LNG Portfolio Overview

Santos currently maintains a portfolio that is:

  • Approximately 90% contracted

  • Around 85% linked to oil prices (on average between 2025 and 2029)

The average contract pricing across this portfolio is benchmarked to 14.7% slope to Brent crude oil over 2025 to 2027. This means a USD 1 increase in the Brent oil price per barrel would add approximately USD 0.147 to Santos’ LNG pricing per MMBtu.

Customers across the Santos LNG portfolio now include:
Hokkaido Gas, Shizuoka Gas, TotalEnergies Gas & Power Asia, Glencore Singapore, Mitsubishi Corporation, PETRONAS, KOGAS, Osaka Gas, JERA, Sinopec, CPC Corporation, and now QET.

Outlook and Market Context

Gallagher reiterated Santos’ commitment to supporting the energy needs of its Asian customer base, particularly through high heating value LNG supplied from its Barossa and PNG LNG projects.

The Santos share price has gained 14.0% year-to-date in 2025.