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Santos GLNG and Australia Pacific LNG sign upstream cooperation deal

LNG Industry,

Santos GLNG and Australia Pacific LNG, two of Australia’s leading liquefied natural gas (LNG) projects, have signed gas swap and infrastructure connection agreements that provide flexibility and allow both companies to realise capital and operational efficiencies.

The new agreements will make gas transportation more efficient between the two projects’ Surat Basin gas fields in Queensland, and will also reduce the need for additional pipeline infrastructure.

Santos GLNG and Australia Pacific LNG are joint venture partners in a number of permits in the Surat and Bowen basins in Queensland. The cooperation agreements will allow both companies to access and transport their gas more efficiently, in order to meet the requirements of their coal seam gas (CSG) to LNG projects.

Trevor Brow, Santos Vice President Queensland commented: “This agreement demonstrates the real efforts that Queensland's LNG projects are making to work together to reduce costs and deliver long-lasting efficiencies. It's a win-win for both projects and puts us in a strong position as we work towards the delivery of first LNG in 2015”.

David Baldwin, CEO of LNG for Origin, the upstream operator of the Australia Pacific LNG project added: "Australia Pacific LNG is pleased to have reached these agreements, which pave the way for more efficient development and transport of gas resources, while reducing the footprint of the industry by avoiding the need to build additional infrastructure such as pipelines".

Under the terms of the agreement, two pipeline connection points will be built between GLNG and Australia Pacific LNG infrastructure and a number of gas swap agreements undertaken to minimise gas movements and operational costs.

The first pipeline connection located on the Santos-operated Fairview gas field, north of Roma will enable significant volumes of gas to flow bi-directionally between Santos GLNG and Australia Pacific LNG. The second pipeline will connect the Santos GLNG Scotia gas field, east of Roma, to Australia Pacific LNG's main gas transmission pipeline.

Without this agreement both projects would need a total of 140 km of additional pipelines and multiple connection points at compressor stations to each deliver its gas to Curtis Island.

Adapted from press release by Katie Woodward

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