The Santos Ltd (ASX: STO) share price is marching higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock closed yesterday trading for $7.68. In morning trade on Friday, shares are changing hands for $7.71 apiece, up 0.1%.
For some context, the ASX 200 is up 0.2% at this same time.
Here's what's catching ASX investor interest today.
Santos share price gains on new LNG contract
The Santos share price is pushing higher after the company announced (in what was labelled non-price sensitive) that it has inked a mid-term LNG supply contract with QatarEnergy Trading (QET).
The contract will see Santos supply around half a million tonnes of LNG a year for two years, commencing in 2026.
Management noted that the new deal with QET extends its existing strong business relationship and provides "a great opportunity" for both companies to leverage their expertise in Asian LNG markets.
The ASX 200 oil and gas company said its portfolio of high-quality, tier-one customers now comprises Hokkaido Gas, Shizuoka Gas, TotalEnergies Gas & Power Asia, Glencore Singapore, Mitsubishi Corporation, PETRONAS, KOGAS, Osaka Gas, JERA, Sinopec, CPC Corporation, and QET.
Santos' portfolio is around 90% contracted and around 85% oil linked on average between 2025 and 2029. According to the release, the average contract pricing across Santos' entire portfolio is estimated at around 14.7% slope to Brent over 2025 to 2027. (For every US dollar increase in the Brent crude oil price per barrel, Sanots expects its LNG price to increase by US 14.7 cents.)
What did management say?
Commenting on the new LNG contract that could help support the Santos share price over the next two years, CEO Kevin Gallagher said, "This contract reinforces our ability to leverage our flexible LNG portfolio to achieve great outcomes for Santos and our customers."
Gallagher added:
It further complements recent mid-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.
Santos share price snapshot
With today's intraday gains factored in, the Santos share price is up 14.0% in 2025.
The ASX 200 energy stock enjoyed a big lift in mid-April following the announcement of a potential, and ongoing, takeover offer from the XRG Consortium.
