Santos hits GLNG milestone

Santos' GLNG Project

Santos' GLNG Project

First gas has reached Gladstone LNG, according to operator Santos.

A statement from the company issued today states that the GLNG project has started producing its first liquefied natural gas (LNG) on Curtis Island, Queensland, “on schedule and within budget”.

“LNG is currently being produced from Train 1 ahead of the first cargo, which is expected to be shipped to Asian markets in the coming weeks,” the statement said.

Train 2 is expected to be operational by the slated start-up date, in December.

Outgoing Santos managing director and chief executive David Knox said it was the most significant milestone to date for Santos.

“We said we’d produce first LNG around the end of the third quarter, and that’s exactly what we’ve done,” Mr Knox said.

“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.”

The first gas announcement is a significant change of pace for Santos.

The company saw a massive 82 per cent plunge in profits during the 2014-15 financial year, which was promptly followed by Mr Knox’s snap resignation from the top job and the sale of $168 million worth of non-core assets in the Carnavon Basin, Western Australia.

Santos’ share price has fallen more than 65 per cent since September last year.

The GLNG Project is aiming for first cargo by the end of the year. Santos owns a 30 per cent interest in the Project while the remaining owners include PETRONAS (27.5per cent), Total (27.5per cent) and KOGAS (15per cent).

“Production from GLNG will be a significant addition to Santos’ growing LNG portfolio, which already includes the Darwin LNG and PNG LNG projects,” Mr Knox said.

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