Australia’s Santos STO.AX said on Wednesday it had signed a mid-term liquefied natural gas (LNG) supply contract with Glencore Singapore, a unit of London-listed Glencore GLEN.L.

Under the contract, Santos will supply 19 LNG cargoes, or up to approximately 0.5 million tonnes of LNG per annum over a period of three years plus one quarter.

Australia’s second-biggest independent oil and gas producer said the contract would commence in the fourth quarter of fiscal year 2025 with LNG being supplied from its global portfolio.

Santos in May signed a deal to supply 400,000 tonnes of LNG every year for a decade starting 2027 to Japanese energy firm Hokkaido Gas 9534.T.

“There continues to be extremely strong demand in Asia for high heating value LNG from projects such as Barossa and PNG LNG,” Santos CEO Kevin Gallagher said in a statement.

The Australian government in May put out a strategy to boost natural gas development despite its commitment to achieve net zero carbon emissions by 2050, indicating soaring demand from Asian partners.
Source: Reuters (Reporting by Echha Jain in Bengaluru; Editing by Subhranshu Sahu)