Discussions Underway for Gladstone LNG Interest

Santos notes speculation that Korea Gas Corporation (Kogas) has agreed to buy 3.5 million tonnes per annum of liquefied natural gas (LNG) from the Gladstone LNG (GLNG) project and take a 15% stake in the project.

Santos confirms that GLNG and Kogas remain in advanced discussions but have not yet reached definitive agreement. Santos will update the market as necessary.

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. 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.