Santos has proposed the construction of a liquefied natural gas (LNG) facility at Gladstone in Queensland, which would see coal seam gas (CSG) processed and sold into export markets.
The proposed Gladstone LNG project is for a 3-4 million tonnes per annum LNG processing train and associated infrastructure which is expected to cost a total of A$5-A$7 billion. The chosen site to construct the LNG export facility is on Curtis Island.
Commenting on the announcement Santos’ Managing Director, Mr John Ellice-Flint said:
This is a landmark project for Santos which will underwrite the continued growth of the coal seam gas industry in Queensland and is a major step forward in the development of a new export industry for the state.
Gladstone LNG is a natural extension of Santos’ core gas business, in line with our strength as Australia’s largest producer of domestic natural gas, including coal seam gas.
Queensland has the majority of Australia’s abundant CSG resources. Santos’ CSG reserves and contingent resources currently total over 5,000 petajoules with significant upside potential.
Key parameters for the proposed facility are:
- A single processing train of approximately 3-4 million tonnes per annum of LNG;
- Capital costs in the range of A$5-A$7 billion, including upstream field development, liquefaction plant and associated infrastructure. Half of the investment is expected to be in the Gladstone plant, with the other half in regional Queensland’s Bowen and Surat Basins;
- Final Investment Decision by the end of 2009 to enable first cargoes to be exported in early 2014;
- Gas supply of 170-220 PJ per annum sourced from Santos’ CSG fields in Queensland’s Bowen and Surat Basins.
Santos has a significant investment in CSG and produces approximately 25% of Australia’s CSG.