News Post
Santos commissions $18bn Gladstone liquefied natural gas project in Australia
Santos and partners have commissioned the $18.5bn Gladstone liquefied natural gas (GLNG) project on Curtis Island, Queensland, Australia.
With an initial production capacity of 7.8 million tons per annum (mtpa) of LNG, the project is designed to process the coal seam gas (CSG) sourced from the Bowen and Surat Basins into LNG. The production capacity is expected to reach 10mtpa in the future.
The GLNG project comprises a gas field development in the Surat and Bowen Basins, a 420km gas transmission pipeline from the gas fields to Gladstone and a two-train LNG plant on Curtis Island.
The first train is scheduled to start LNG shipping to Asian markets in the coming weeks while the second is planned to enter service by the end of the year.
Santos managing director and CEO David Knox said: "Our upstream facilities are fully operational and performing well, we're producing LNG on Curtis Island, and we're now looking forward to safely delivering our first LNG cargo in the coming weeks.
"Project revenue is underpinned by binding long-term LNG sales contracts covering more than 90% of the plant's capacity."
Separately, oil and gas company Senex Energy has signed a 20-year gas sales agreement (GSA) with GLNG, under which Senex to supply up to 50 TJ/day of sales gas from its Western Surat Gas Project to GLNG.
As per the deal, Senex will get $42m cash and a comprehensive suite of subsurface, production and other technical data which will help the company in its Final Investment Decision on the Western Surat Gas Project.
Sensex will sell the 77km2 Maisey block within ATP 889 to GLNG.
Senex managing director Ian Davies said: "Even at current oil prices and exchange rates we expect the project to be economic, although there is further work to do to proceed to FID.
"This is a transformational deal for Senex and aligns with our strategy to capitalise on the strength of Australia's East Coast gas market whilst maintaining our financial strength."
Santos expects the GLNG project to have significant growth impact on its LNG portfolio, which includes the Darwin LNG and PNG LNG projects.
Santos operates the project with 30% stake while KOGAS has a 15% interest. Petronas and Total also hold a 27.5% stake each.
-EBR
For subscriptions or a demo:
Sam Hassaniyeh
Subscription Executive
Phone: +44 203 4092242
For questions or to give feedback:
Thad Pittman
Senior Researcher
Phone: +1 (713) 525-4605
Download our brochure today!
Project News