Gladstone: home to majority of Australian coalbed methane projects
Australian independent Santos is close to wrapping a gas sales agreement with Korea Gas, which together with the offtake arrangements with Petronas, will underpin the demand for the first train at its Gladstone liquefied natural gas project, analysts said in a report.
The report put up by Sanford C. Bernstein & Co.’s analysts, Neil Beveridge and Angus Chan, pegged the cost of the first production train at $7 billion.
The report also flagged up Petronas’ planned 3-million-tonne per annum LNG import facility as a positive development backing the Gladstone LNG (GLNG) project.
“We expect final investment decision on GLNG Train 1 to take place before the end of 2010 with the second train offering longer-term upside,” the Hong Kong-based analysts said.
Kogas was said to be in talks with Santos on the supply of at least 1 mtpa of gas and a 10% stake in the GLNG project.
Santos and Petronas are 60/40 joint venture partners in the coalbed methane to LNG project. The Malaysian state player has agreed to buy 2 mtpa of gas from the Santos-operated project and has the option to take another 1 mtpa from GLNG.
Tuesday 13 July 2010
Upstream
http://www.upstreamonline.com/live/article221366.ece
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