An aerial photograph of Curtis Island.
An aerial photograph of Curtis Island. Brenda Strong

CSG pipes to link south-west Qld and Curtis island

A DEAL worth "hundreds of millions of dollars" has been signed between two gas powerhouses, inking an agreement to share a coal seam gas pipeline from south-west Queensland to Curtis Island near Gladstone.

The arrangement means Santos will not have to develop a 140km gas pipe to link its Scotia Plant north of Wandoan to its Fairview gas fields near Injune.

Instead, the plant will funnel its gas through a pipe being built separately by Origin, designed to feed its own Curtis Island factory.

Santos and Origin are currently building their GLNG and APLNG plants, worth about $20 billion each.

Each are connected to gasfields in the Bowen and Surat basins by pipelines stretching between 420km for GLNG and 530km for APLNG.

The pair will do a "gas swaps" as a way for Origin to reimburse Santos for taking its gas.

Although the deal has been planned since both firms made final investment decisions on their GLNG and APLNG plants, the confirmation also means landholders between Injune and Wandoan will not have to negotiate for a pipeline to cross their properties.

Santos Queensland vice president Trevor Brown said the deal means the gas giant would avoid spending "in the range of hundreds of millions of dollars".

"We have avoided infrastructure that could have been required had a cooperative agreement not been reached," he said.