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Santos announces first LNG produced from GLNG project

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LNG Industry,

Santos has announced that the first LNG has been produced on Curtis Island, Queensland as part of its Gladstone LNG (GLNG) project, both within budget and on time. The GLNG project includes gas field development in the Bowen Basin and the Surat Basin, a 420 km pipeline, and an LNG plant on Curtis Island, Australia, consisting of two LNG trains. Santos is the main shareholder, with a 30% stake in the project. Petronas, Kogas and Total also have shares in the GLNG project, holding 27.5%, 15% and 27.5% shares, respectively.

Whilst train 2 is not expected to be ready for production until the end of 2015, LNG is now being produced on train 1, which will be ready for cargo shipments to Asia in the forthcoming weeks. When fully operational, the LNG plant will have a 7.8 million tpy of LNG capacity.

David Knox, the Managing Director and CEO of Santos, said: “We said we’d produce first LNG around the end of the third quarter, and that’s exactly what we’ve done […] 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.

“I would like to thank our joint venture [JV] partners, Petronas, Total and Kogas for their support in the successful delivery of this major milestone.

“Production from GLNG will be a significant addition to Santos’ growing LNG portfolio, which already includes the Darwin LNG and PNG LNG projects.”

Edited from various sources by David Rowlands

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