Australia LNG producer Santos approves New PNG Gas supply project
Synopsis
PNG LNG expansion plans advanced after Santos approved the Agogo tie-in project in Papua New Guinea. The development will connect additional gas supply into existing LNG infrastructure as Asian demand for long-term LNG contracts continues. Santos said PNG LNG produced 8.6 million tonnes during 2025 operations and shipped 116 cargoes.
Santos approved the Agogo tie-in project to support PNG LNG expansion using existing infrastructure as Asian LNG demand continues supporting regional export developments and long-term supply contracts.
Key Highlights
- Santos approved the Agogo tie-in project for existing PNG LNG infrastructure.
- PNG LNG produced 8.6 million tonnes and shipped 116 cargoes in 2025.
- Santos holds a 39.9% stake in PNG LNG after Oil Search merger.
- IEA expects further global LNG demand growth during 2026 market conditions.
PNG LNG expansion plans moved forward after Santos approved the Agogo production facility tie-in project in Papua New Guinea, adding a new gas supply to the existing LNG export network.
The project will connect the Agogo field to the Kutubu central processing facility and existing PNG LNG infrastructure.
The approval comes as LNG producers continue prioritising lower-cost expansion projects using existing infrastructure instead of building entirely new export plants. Santos said the project received approval from PNG LNG joint venture partners, including operator ExxonMobil.
Santos, one of Australia’s largest oil and gas producers, owns a 39.9% stake in PNG LNG following its merger with Oil Search in 2021.
ExxonMobil operates the project alongside partners including JX Nippon, Kumul Petroleum Holdings and Mineral Resources Development Company.
LNG Demand Keeps Regional Projects Active
The PNG LNG expansion project comes as Asian LNG demand remains elevated despite softer spot prices earlier this year. According to the International Energy Agency’s latest Gas Market Report, global LNG demand is expected to rise further in 2026, led by China and emerging Asian markets.
Japan and South Korea continue relying heavily on imported LNG for power generation, while Taiwan remains one of the region’s largest long-term LNG buyers.
PNG LNG exports are supplied mainly to Asian utilities, including JERA, Osaka Gas, CPC Taiwan and Sinopec, under long-term contracts.
The PNG LNG facility near Port Moresby has an annual capacity of 8.3 million tonnes but has consistently produced above that level. Santos said the project produced 8.6 million tonnes during 2025 and shipped 116 LNG cargoes.
Santos Adds to Papua New Guinea Portfolio
The PNG LNG expansion project adds to Santos’ growing Papua New Guinea operations after the company completed the Angore gas project in late 2024.
Santos said gas from Agogo and nearby fields, including Moran, Kutubu and Gobe, already contributes feed gas into PNG LNG infrastructure.
The company reported US$4.94 billion in revenue and $898 million underlying profit for 2025 in its latest annual report. Santos maintained production guidance between 101 million and 111 million barrels of oil equivalent for 2026.
FAQs
Q1. What is the Santos Agogo tie-in project?
The project will connect gas from the Agogo field into existing PNG LNG infrastructure in Papua New Guinea to support additional LNG exports.
Q2. Why is the PNG LNG expansion important for regional gas markets?
The project adds gas supply into an established LNG export network as Asian buyers continue relying on long-term LNG imports.
Q3. How much LNG did PNG LNG produce recently?
PNG LNG produced 8.6 million tonnes of LNG and shipped 116 cargoes during 2025, according to Santos.
Q4. What role does Santos play in PNG LNG?
Australia-based Santos owns a 39.9% stake in PNG LNG following its merger with Oil Search in 2021.
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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