Santos announced Thursday that the GLNG project has started producing its first liquefied natural gas (LNG) on Curtis Island, Australia, on schedule and within budget.

The two-train LNG plant on Curtis Island will have the capacity to produce 7.8 million tons of LNG per year when fully operational, according to Santos. LNG is currently being produced from Train 1, with Train 2 expected to be ready for start-up by the end of the year. The GLNG project produces natural gas from Queensland’s coal seams and converts it into LNG.

Santos Managing Director and Chief Executive Officer David Knox commented in a company statement:

“We said we’d produce first LNG around the end of the third quarter, and that’s exactly what we’ve done. Our upstream facilities are fully operational and performing well, we’re producing LNG on Curtis Island, and we’re now looking forward to safely delivering our first LNG cargo in the coming weeks. Project revenue is underpinned by binding long-term LNG sales contracts covering more than 90 percent of the plant’s capacity. I would like to thank our joint venture partners, Petronas, Total and Kogas for their support in the successful delivery of this major milestone. Production from GLNG will be a significant addition to Santos’ growing LNG portfolio, which already includes the Darwin LNG and PNG LNG projects.”

Santos is the operator of the GLNG project with a 30 percent interest. PETRONAS holds a 27.5 percent interest, as does Total, and Kogas holds a 15 percent interest.

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