Santos starts GLNG production

Audrey Raj
Thursday, September 24, 2015

The Santos-led GLNG project has started producing its first liquefied natural gas (LNG) on Curtis Island, Queensland, on schedule and within budget, the company said.

Train 1, which welcomed its first gas in August, is producing the gas that will be shipped to Asian markets in the coming weeks, including Malaysia and Korea.

Work on Train 2 is continuing to progress, and expected to be ready for startup by the end of the year.

“Our upstream facilities are fully operational and performing well,” commented David Knox, managing director and CEO of Santos. “We’re producing LNG on Curtis Island, and we’re now looking forward to safely delivering our first LNG cargo.

"Project revenue is underpinned by binding long-term LNG sales contracts covering more than 90% of the plant’s capacity. Production from GLNG will be a significant addition to Santos’ growing LNG portfolio, which already includes the Darwin LNG and PNG LNG projects,” he said.

Since January 2011, the US$18.5 billion LNG venture has provided more than A$11.6 billion worth of work to Australian businesses, with A$6.2 billion spent in Queensland alone. Over A$492 million was spent collectively in the Maranoa, Western Downs and Toowoomba regions, and over A$267 million in Gladstone and Rockhampton.

GLNG involves gas field development in the Surat and Bowen basins, a 420km gas transmission pipeline and a two-train LNG plant on Curtis Island, near Gladstone, which will have the capacity to produce 7.8 MTPA of LNG when fully operational. Santos is the operator and has a 30% interest in the project. Other co-ventures include Petronas (27.5%), Total (27.5%) and KOGAS (15%).

Categories: LNG Natural Gas

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