Regional LNG: Santos, GDF SUEZ to review alternative concepts for Bonaparte LNG

By Romel S. Gurky

ASX-listed Santos Limited and GDF SUEZ announced on Thursday that the Bonaparte LNG project will consider other potential development options in addition to the floating LNG concept to develop the Petrel, Tern and Frigate natural gas fields, located 250 kilometres offshore west of Darwin. These options will include a pipeline connection to Darwin.

The project is 40 percent owned by Santos and 60 percent by GDF SUEZ (operator)

While the partners firmly believe the fields have material value, having been fully appraised, their future development using floating LNG technology, although technically robust as demonstrated during extensive pre-FEED studies, does not currently meet the companies' commercial requirements.

Consequently, the proposed Bonaparte floating LNG project will not be taken into the front-end engineering and design (FEED) phase at this point in time.

Santos received a cash consideration of US$200 million when the Bonaparte LNG joint venture was formed, and has received a full carry on study and development costs by GDF SUEZ.

Editing by Johannes Simbolon