Lower LNG prices hit Santos revenue

Australian independent LNG producer Santos reported a 22.6 percent drop in quarterly sales revenue as Covid-19 pushed down LNG prices.

The firm posted a third-quarter revenue of $797 million, compared to $1.03 billion last year and $785 million in the previous quarter.

Production increased 26.8 percent to a record 25.1 million barrels of oil equivalent.

Santos said its average realised LNG price was significantly lower than the prior quarter reflecting the linkage of sales contracts to a lagged Japan Customs-cleared Crude (JCC) price.

Three-month lagged JCC averaged $31/bbl in the third quarter compared to $68/bbl in the second quarter.

Furthermore, Santos’ LNG projects shipped 61 cargoes in the third quarter, of which 11 were spot cargoes.

Santos chief Kevin Gallagher said the firm expects the third quarter to represent the trough for LNG prices, with higher prices expected in the fourth quarter based on current JCC oil-linked and JKM spot pricing.

JKM is currently above $6/mmBtu for December delivery.

- Advertisements -

Most Popular

Golden Pass LNG contractor Zachry files for bankruptcy

US construction company Zachry said on Tuesday it has filed for bankruptcy, initiating a structured exit from the Golden...

UAE’s Adnoc in Mozambique LNG move

UAE's Adnoc has agreed to buy Galp’s 10 percent interest in the Area 4 concession of the Rovuma basin...

Seatrium secures contract from Hyundai LNG Shipping

Singapore’s Seatrium has secured a contract from South Korea's Hyundai LNG Shipping to repair and upgrade the latter's LNG...

More News Like This

Papua New Guinea’s Kumul sells its first spot LNG cargo

Papua New Guinea’s national oil and gas company Kumul Petroleum said it had sold its first spot liquefied natural...

Santos: PNG LNG shipped 27 cargoes in Q1

The ExxonMobil-operated PNG LNG project in Papua New Guinea shipped 27 cargoes of liquefied natural gas in the first...

Santos: Barossa gas project more than 70 percent complete

The Barossa gas project, which will supply feed gas to the Santos-operated Darwin LNG plant, is more than 70...

TotalEnergies pushes back Papua LNG FID to 2025

French energy giant TotalEnergies and its partners have postponed a final investment decision on the planned Papua LNG export...