Santos To Supply Cooper Basin Conventional Gas To Gladstone LNG
October 24 2010 - 8:07PM
Dow Jones News
Santos Ltd. (STO.AU) said Monday that it will supply
conventional natural gas from interests in the Cooper Basin to its
proposed gas export joint venture in Queensland state.
Santos and joint venture partners Petroliam Nasional Bhd. and
Total S.A. (TOT) had originally planned to feed their liquefied
natural gas project at Gladstone with coal seam gas from southern
Queensland. Analysts, however, are concerned that Santos may not be
able to prove up sufficient coal seam gas reserves in time to
support a two-train LNG project.
In a deal that will help douse those concerns, Santos said
Monday that it will supply 750 petajoules of gas, primarily from
the Cooper Basin in central Australia, to the Gladstone LNG project
for 15 years commencing 2014. Prices will be linked to the
prevailing oil price, Santos said.
Discussions are currently being held with other Cooper Basin
joint venture partners about participating in the supply
arrangement. These include Beach Energy Ltd. (BPT.AU) and Origin
Energy Ltd. (ORG.AU).
Security of gas supply to Gladstone LNG may help Santos progress
LNG sales talks it's currently engaged in with Korea Gas Corp.
(036460.SE) and other potential Asian buyers.
-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692;
Ross.Kelly@dowjones.com
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