GLNG

Location

Gladstone, Queensland

Participants

Santos - 60% (operator)

PETRONAS - 40%

Project Overview

The GLNG^® project will involve piping coal seam gas (CSG) from Santos’ eastern Queensland fields to a plant at Gladstone, where the gas will be liquefied and loaded to ships for sale to world market’s. LNG is an energy source that has significant environmental benefits including substantially lower greenhouse gas emissions and water use when compared to other fossil fuels. 

GLNG will produce 7.2 million tonnes per annum (mtpa) of LNG through two LNG processing trains, with a maximum potential production of 10 mtpa.

In May 2008 Santos announced it had selected PETRONAS, one of the world’s largest LNG producers, to be its 40% partner in the development, operation and marketing of the company’s proposed GLNG project. An important milestone was achieved in June 2009 when GLNG announced a binding head of agreement to sell two million tonnes per annum of LNG to their partner, PETRONAS, over 20 years starting in 2014.

Following the submission of GLNG's draft Environmental Impact Statement (EIS) on 30 March 2009, the EIS has gone through an extensive public consultation process which concluded on 17 August 2009. Over 30 consultation sessions were held with 40 formal submissions made to the Queensland Government.

Proven and probable CSG reserves have grown three-fold since 2007, and Santos now has more than enough gas to underpin the first GLNG train.

A final investment decision is expected in 2010.

Current Status

GLNG became Australia's first major coal seam gas to LNG project to receive its environmental approval from the Queensland Government on 28 May 2010. The environmental approval process now continues with Federal Government consideration of the project.

Santos appointed Fluor as the preferred contractor to carry out Engineering, Procurement and Construction (EPC) of the upstream facilities component of the GLNG project.  Santos extended Fluor's engineering design contract to include early works activities of approximately A$50 million.

The upstream, pipeline and two-train plant FEED continued to progress on schedule and is near completion.

The final of seven Indigenous Land Use Agreements (ILUAs) required for the downstream components of the project was agreed in principle in June.  The ILUA is expected to be signed and authorised in the third quarter.

First Production

A final investment decision should be made in 2010 to enable first cargoes to be exported in 2014. 

Visit the GLNG website.