PNG LNG boosts Santos results

Santos has attributed a rise in Q2 production and sales revenue to the successful start-up of the PNG LNG project.

The LNG project commenced production, ahead of schedule, in April. The PNG LNG project had shipped seven LNG cargoes by the end of Q2 2014.

Santos’ Q2 production climbed 5% to 12.8 million boe, compared to Q1 2014. This figure was 3% up on the corresponding period of 2013.

Sales revenue was up 22% and 25% respectively, to US$974 million.

PNG LNG an ‘important milestone’

Santos Managing Director and Chief Executive Officer, David Knox, said: “Delivery of the PNG LNG project is an important milestone for Santos in our journey to becoming a major LNG supplier to Asia. This project will significantly lift Santos’ LNG production once the project reaches full output, and we are already seeing the contribution it is making.”

Gladstone LNG project

Santos reported that the Gladstone LNG (GLNG) project had recently celebrated many construction milestones, including the handover for commissioning of the first upstream gas hub, completion of the final weld on the gas transmission pipeline, placement of the final train 1 module and the completion of hydro-testing of the first LNG tank.

Mr Knox continued: “GLNG continues to make good progress, it remains on budget and we are on track to deliver first LNG in 2015.”

Sales gas, ethane and gas to LNG production of 55.7 PJ for the quarter was 8% higher than the corresponding quarter, with higher production from Darwin LNG and start-up at PNG LNG, offset by lower production from the Carnarvon Basin due to lower customer nominations.

Adapted from press release by Callum O'Reilly

Read the article online at: https://www.lngindustry.com/liquefaction/18072014/png-lng-boosts-santos-results-1016/