Santos GLNG aerial February 2015. Photo Contributed
Santos GLNG aerial February 2015. Photo Contributed Contributed

GLNG starts LNG production on schedule, within budget

IN A STATEMENT released today Santos has announced its GLNG project has started producing its first liquefied natural gas (LNG) on Curtis Island on schedule and within budget

LNG is currently being produced from Train 1 ahead of the first cargo, which is expected to be shipped to Asian markets in the coming weeks.

The second train is expected to be ready for start-up by the end of the year. Santos managing director and chief executive officer David Knox said it was most significant milestone to date.

"We said we'd produce first LNG around the end of the third quarter, and that's exactly what we've done," Mr Knox said.

"Our upstream facilities are fully operational and performing well, we're producing LNG on Curtis Island, and we're now looking forward to safely delivering our first LNG cargo in the coming weeks."

"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."

GLNG produces natural gas from Queensland's coal seams and converts it into LNG. It involves gas field development in the Surat and Bowen Basins, a 420-kilometre gas transmission pipeline and a two-train LNG plant on Curtis Island, near Gladstone which will have the capacity to produce 7.8 million tonnes of LNG per year when fully operational.

Santos is the operator and has a 30% interest in the project. Other coventurers include PETRONAS (27.5%), Total (27.5%) and KOGAS (15%).