GLNG acquires Meridian CSG project
Published by Jessica Casey,
Editor
LNG Industry,
Santos has entered into a binding agreement to acquire a 30% interest in the Me-ridian CSG project for ~US$85 million – US$90 million as part of a sale to the GLNG joint venture partners and has completed the sale of its interest in the Mahalo joint venture, valued at ~US$23 – US$44 million.
The GLNG joint venture partners – Santos, TotalEnergies, PETRONAS, and KOGAS – have entered into binding agreements to acquire 100% of the Greater Meridian CSG project in Queensland, which was underpinned by a long-term supply contract with GLNG. Each GLNG partner will acquire a pro-rata share in line with its GLNG joint venture interest, with Santos acquiring a 30% interest and becoming operator of the project upon completion of the transaction.
The acquisition is consistent with Santos’ strategy of disciplined growth around existing infrastructure, with synergies expected as operations are integrated with Santos’ other CSG operations in Queensland. Meridian will become a fifth production hub for GLNG.
Meridian is a producing asset, the development of which was underpinned by the existing long-term supply contract with GLNG that commenced in 2015. Meridian also supports a domestic gas contract with local manufacturer Queensland Nitrates at Moura.
The asset has further production growth potential. GLNG ownership of the asset is a natural step towards unlocking undeveloped resources.
“The Meridian acquisition meets our disciplined capital allocation criteria, exceeds our internal hurdle rates, and is value accretive for Santos,” said Santos Managing Director and CEO, Kevin Gallagher.
Santos and each of the GLNG joint venture partners have entered into binding sale and purchase agreements with Westside Corp. and Mitsui E&P Australia for the Meridian CSG project in Queensland.
The gross purchase price is AUS$430 million (~US$310 million) with an effective date of 1 January 2026. Taking into account positive cash flows from the effective date to completion, as well as transaction costs, Santos’ net acquisition cost is forecast to be ~US$85 million – US$90 million.
Santos CSG Pty Ltd will enter a new joint operating agreement with its GLNG joint venture partners, TotalEnergies, PETRONAS, and KOGAS, effective from completion. Westside will provide transitional support for up to six months post completion.
Completion of the transaction is conditional on regulatory approvals, including competition approvals, FIRB approvals, and Queensland departmental consents as well as other customary consents from counterparties. Completion is being targeted for late 2026.
Santos also announced it has now completed the divestment of its 42.86% operated interest in the Mahalo joint venture in Queensland’s Bowen Basin to Comet Ridge Mahalo Pty Ltd.
Santos has received total initial proceeds of ~AUS$32 million (US$23 million), comprised of AUS$2 million deposit, AUS$22.42 million in cash consideration at completion, plus approximately 83.78 million ordinary fully-paid Comet Ridge shares, currently valued at ~AUS$7.5 million. Disposal of the shares is subject only to a good faith consultation obligation and use of reasonable endeavours to facilitate any disposal in a manner that maintains an orderly market. In addition, AUS$30 million in contingent cash payments are payable upon gross production milestones of the Mahalo project, subject to its development, taking total consideration to up to ~AUS$62 million (US$44 million).
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/24082026/glng-acquires-meridian-csg-project/
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