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Santos delivers Scotia project ahead of schedule and under budget

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LNG Industry,

Santos has successfully completed commissioning and start-up of the Scotia CF1 project in Queensland, ahead of schedule and under budget with initial full field production exceeding 40 TJ/day, in line with expectations.

The project, situated in the Bowen Basin, 340 km northwest of Brisbane, will supply about 70 TJ/day at peak production in late 2019, significantly boosting gas supply to the Santos GLNG project and benefiting both the east coast domestic gas and export LNG markets.

More than 400 people worked on the project which involved expanding the Scotia compression plant and field from 23 to more than 100 wells, building 85 km of linear infrastructure, two 4G communications towers and an irrigation system for water treatment.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said the execution of the project was outstanding, coming in well ahead of schedule and well under budget.

“The project was estimated to cost A$493 million, but the team has delivered it for A$416 million, 16% under budget,” Gallagher said.

“Site infrastructure is also running three months ahead of schedule and some of the well completions are a year ahead of time.”

“This is a testament to the Santos team and reflects our laser focus on cost of supply, innovation and efficiency over the last two and a half years. No other operator can match Santos’ position as Australia’s lowest cost onshore developer.”

“The project is entirely on private land and I thank our landholders for their cooperation and support which has made this achievement possible.”

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