Santos numbers are good news for Gladstone's GLNG plant.
Santos numbers are good news for Gladstone's GLNG plant.

Santos numbers good for Gladstone

There are positive signs for Gladstone’s GLNG plant, according to figures in Santos’ fourth-quarter report for 2019.

Increased gas production upstream resulted in the final three months of 2019 being the best for the year.

A target to deliver a six- million metric tonnes per year equivalent run rate was achieved in October, and Santos is now expecting an increase to 6.2 mtpa from 2020.

Chief executive officer of consultancy firm EnergyQuest, Dr Graeme Bethune, said the figures were encouraging.

“Increased production is a very good thing,” he said, agreeing with the report it was largely off the back of increased drilling around Roma, as well as reduced costs.

The positive signs are in line with the national market generally, and Dr Bethune pointed to EnergyQuest analysis released earlier this month showing Australia had become the world’s largest exporter of LNG in 2019.

Analysts estimated total 2019 LNG export revenue was $49 billion, up from $43.3 billion in 2018.

Queensland production was up 8.2 per cent, with both Australian Pacific LNG and Queensland Curtis LNG operating at close to full capacity.

GLNG has a capacity of 7.8 mtpa.

According to Santos, the plant has been supplying two Asian customers since the first exports in 2015.