TotalEnergies SE (NYSE:TTE) shares are trading higher premarket on Wednesday. The company inked a mid-term LNG supply contract with Santos to supply 20 LNG cargoes, or up to 0.5 million tonnes annually, over three years plus one quarter.
Starting in the fourth quarter of 2025, the LNG will be sourced from Santos' global portfolio and delivered ex-ship.
Santos Managing Director and Chief Executive Officer Kevin Gallagher said, "This oil indexed contract, along with the recently executed long-term LNG Sales and Purchase Agreement with Hokkaido Gas in Japan, and the mid-term contract with Glencore, demonstrates Santos' strong LNG portfolio position and customer relationships in the region."
"Our portfolio is nicely balanced over the short to medium term with around eighty percent of volumes indexed to oil price and around twenty percent exposed to spot pricing."
"There continues to be extremely strong demand in Asia for high heating value LNG from projects such as Barossa and PNG LNG as countries focus on reducing their carbon emissions. Santos is committed to supporting the energy security of our valued customers across Asia, where gas will play an essential role in decarbonisation efforts across the region."
Yesterday, TotalEnergies, along with APA Corporation and Staatsolie Maatschappij Suriname, disclosed a Final Investment Decision (FID) for the first oil development in Block 58, located offshore Suriname.
The total investment is estimated at $10.5 billion, with the first oil expected in 2028.
Investors can gain exposure to the stock via Advisor Managed Portfolios Miller Value Partners Appreciation ETF (NYSE:MVPA) and Octane All-Cap Value Energy ETF (NASDAQ:OCTA).
Price Action: TTE shares are up 2.60% at $67.39 premarket at the last check Wednesday.
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