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    The Australian: Santos looks for supply deals to lift the lid on Browse

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Summary

Santos has started talks with ConocoPhillips and Inpex over the potential to supply the pair’s Northern Territory liquefied natural gas plants with gas from its low-profile Browse Basin discoveries.

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Asia/Oceania

The Australian: Santos looks for supply deals to lift the lid on Browse

Santos has started talks with ConocoPhillips and Inpex over the potential to supply the pair’s Northern Territory liquefied natural gas plants with gas from its low-profile Browse Basin discoveries.

Santos is currently drilling its Lasseter-1 well in the Browse Basin, north of Broome in Western Australia, and is confident the well could add to its resource ­position in the region.

Lasseter sits in the same permit as the Crown gasfield, Santos’s largest discovery, with the well set to reach its target next month.

Santos general manager for Western Australia and the Northern Territory, Brett Woods, told The Australian that the group was already in discussions with ConocoPhillips and Inpex over the potential to pipe gas from its Browse Basin permits to their LNG facilities.

“Those conversations are in play at the moment,” Mr Woods said.

Crown and Lasseter are sandwiched between the Conoco­Phillips-led Poseidon gas discovery and the Inpex-led Ichthys gasfield, leaving them well placed to be incorporated into ­either development. Inpex also holds a 20 per cent interest in the Crown and Lasseter permits.

ConocoPhillips operates the Darwin LNG plant, in which Santos holds an 11.5 per cent stake, and has said it is open to gas supply deals with third parties as it looks to top up supplies into the plant and potentially underpin a doubling of capacity.

Inpex is leading the construction of the Ichthys LNG plant near Darwin, and also has the ­capacity to expand the facility.

Mr Woods said there was an understanding between the various Browse Basin explorers that collaboration was a more sensible approach than each party going alone. MORE