Santos Starts Production at GLNG Project on Schedule

Santos Thursday announced the GLNG project has started producing its first liquefied natural gas (LNG) on Curtis Island, Queensland, Australia 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. Work on the second train is continuing to progress well, with Train 2 expected to be ready for start-up by the end of the year, Santos said.

“We said we’d produce first LNG around the end of the third quarter, and that’s exactly what we’ve done,” Santos Managing Director and Chief Executive Officer David Knox said. “Project revenue is underpinned by binding long-term LNG sales contracts covering more than 90 percent of the plant’s capacity.”

GLNG is a venture which 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 percent interest in the project. Other co-venturers include PETRONAS (27.5 percent), Total (27.5 percent) and KOGAS (15 percent).