(Adds context and details in paragraphs 2-5) Jan 25 (Reuters) -...

(Adds context and details in paragraphs 2-5)

Jan 25 (Reuters) - Australia's Santos (STO) reported a 21.1% fall in its fourth-quarter revenue on Thursday, hurt by weaker liquefied natural gas (LNG) prices and lower production volumes.

LNG prices have fallen in the recent times as ample inventories and mild winter in the Northern Hemisphere outweighed geopolitical tensions in the Red Sea.

The oil and gas producer, which is in early stage discussion with rival Woodside Energy (WDS) for a potential $52 billion merger, said its average realised LNG price was $12.33 per metric million British thermal unit (mmBtu) in the quarter, compared with $12.02 per mmBtu in the previous three-month period and $16.92 per mmBtu a year earlier.

Santos said its revenue for the quarter ended Dec. 31 was $1.49 billion, compared with $1.88 billion a year earlier. According to RBC Capital Markets, the Visible Alpha consensus estimate was $1.5 billion.

Santos said it expects an additional $200 million to $300 million in capital expenditure from its Barossa project and first gas is expected in the third quarter of 2025.