Australia and OceaniaCorporate

Lower LNG prices hit Santos revenue

By Mirza Duran
Lower LNG prices hit Santos revenue
Darwin LNG (Image: Santos)

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.

Most Popular

LNG Terminals

Atlantic LNG shipping rates down, Pacific rates climb

Atlantic spot LNG shipping rates dropped this week, while Pacific rates rose compared to the week before, according to Spark Commodities.
LNG Terminals

Cheniere nears launch of seventh Corpus Christi expansion train

US LNG exporter Cheniere is close to launching the seventh and final train of the Corpus Christi Stage 3 expansion project in Texas.
LNG Terminals

Vietnam’s Cai Mep LNG terminal starts gas deliveries to Phu My power complex

Nebula Energy’s AG&P LNG has started delivering natural gas from Vietnam's Cai Mep liquefied natural gas (LNG) import terminal to the 900 MW Phu My 2.1 and 2.1E power plants operated by EVNGENCO3.
spot_img

More News Like This

Contracts and Tenders

Santos pens 10-year gas supply deal with South Australia

Australian LNG player Santos said it had entered into a 10-year gas supply agreement with the South Australian government.
Corporate

Santos appoints new board member

Australian LNG player Santos has appointed Kate Vidgen as an independent non-executive director effective June 17.
LNG Terminals

Japan’s Jera gets first Barossa LNG cargo at Futtsu terminal

Japan’s power firm and LNG trader, Jera, has received its first Darwin LNG cargo produced from Australia's Barossa gas field at the Futtsu LNG terminal in Japan.
LNG Terminals

Santos takes FID on Agogo project in Papua New Guinea

Australian LNG player Santos has taken a final investment decision to proceed with the Agogo production facility tie-in project in Papua New Guinea, following approval by the ExxonMobil-led PNG LNG joint venture.