Regional LNG: Santos proposes Gladstone LNG Project

Australian oil, gas firm Santos Limited on Wednesday announced a proposal to construct a liquefied natural gas (LNG) facility at Gladstone in Queensland, Australia, which would see coal seam gas processed and sold into export markets.

The proposed Gladstone LNG project is for a 3-4 million tonnes per annum LNG processing train and associated infrastructure which is expected to cost a total of A$5-A$7 billion, the company said.

In a separate statement the Premier of Queensland, Peter Beattie, gave his support to the project and announced the granting of significant project status.

The announcement follows extensive feasibility and site selection studies over the past

18 months, which have culminated in an agreement with the Port of Gladstone Authority for Santos to secure a site to construct a LNG export facility on Curtis Island.

Santos said final investment decision would be made by the end of 2009 to enable first cargoes to be exported in early 2014. (alex)