Global energy company Santos has entered a new mid-term agreement with QatarEnergy Trading (QET) to supply around 0.5 million tonnes per annum (mtpa) of LNG over two years, starting in 2026.

The LNG will be sourced from Santos’ portfolio and delivered on an ex-ship basis.

This deal extends Santos’ existing relationship with QET and enhances its presence in the Asian LNG markets.

This contract also adds to Santos’ portfolio of tier-one customers, which includes names such as Hokkaido Gas and Shizuoka Gas, among others.

Santos has around 90% of its portfolio contracted and approximately 85% oil-linked between 2025 and 2029.

The average contract pricing is estimated at a 14.7% slope to Brent from 2025 to 2027.

The company's strategy involves leveraging charter LNG vessels.

Santos managing director and CEO Kevin Gallagher said: “This contract reinforces our ability to leverage our flexible LNG portfolio to achieve great outcomes for Santos and our customers. It further complements recent mid-term and long-term LNG sales and purchase agreements, underscoring Santos’ robust LNG portfolio and strong customer relationships in the region.

“We continue to see very strong demand in Asia for high heating value LNG from projects such as Barossa and PNG LNG, as well as for reliable regional supply. Santos remains committed to supporting the energy security and emissions reduction strategies of our valued customers across Asia.”

In related news, last month Santos granted exclusive due diligence access to a consortium spearheaded by Abu Dhabi National Oil Company (ADNOC).