[Australia] Gladstone LNG

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escveritas
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[Australia] Gladstone LNG

Unread post by escveritas »

18th JUL 2007

Santos today announced a proposal to construct a liquefied natural gas (LNG) facility at Gladstone in Queensland, 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.

In a separate statement (attached) the Premier of Queensland, the Hon Peter Beattie MP, 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.

Commenting on the announcement Santos’ Managing Director, Mr John Ellice-Flint, stressed the significance of the project to both Santos and Queensland, and the importance of the Government support as evidenced by the granting of a significant project declaration by the Coordinator-General.

“This is a landmark project for Santos which will underwrite the continued growth of the coal seam gas industry in Queensland and is a major step forward in the development of a new export industry for the state,” he said

“Gladstone LNG is a natural extension of Santos’ core gas business, in line with our strength as Australia’s largest producer of domestic natural gas, including coal seam gas.

“Queensland has the majority of Australia’s abundant CSG resources. Santos’ CSG reserves and contingent resources currently total over 5,000 petajoules with significant upside potential.

“Constructing and operating major onshore gas installations is a core competency for Santos, and we are already involved in the LNG industry by virtue of our interests in Darwin LNG, the most recent greenfield LNG project constructed in Australia.

“Santos is committed to building a diverse LNG supply portfolio, as demonstrated by Darwin LNG, our strong support for a PNG LNG project and now Gladstone LNG.

“Conceptual engineering and preliminary financial analysis have confirmed that Gladstone LNG will generate acceptable rates of return for shareholders, whilst at the same time providing significant benefits for Queensland in terms of employment and royalties,” he said.

Key parameters for the proposed facility are:
  • A single processing train of approximately 3-4 million tonnes per annum of LNG;
  • Capital costs in the range of A$5-A$7 billion, including upstream field development, liquefaction plant and associated infrastructure. Half of the investment is expected to be in the Gladstone plant, with the other half in regional Queensland’s Bowen and Surat Basins;
  • Final Investment Decision by the end of 2009 to enable first cargoes to be exported in early 2014;
  • Gas supply of 170-220 PJ per annum sourced from Santos’ CSG fields in Queensland’s Bowen and Surat Basins.
Following today’s important steps of securing Government support and a suitable site, the next steps include:
  • Appointment of a suitable engineering contractor to undertake detailed engineering studies;
  • Continued accelerated exploration and appraisal drilling program to prove up additional CSG reserves;
  • Completion of planning and environmental studies, including community consultation processes;
  • Preliminary LNG marketing.
Santos has a significant investment in CSG and produces approximately 25% of Australia’s CSG. In 2007 Santos will invest approximately $150 million in expanding its CSG business. In addition, subject to Gladstone LNG project progress and Santos Board approvals, the Company expects to invest a further $200 million to progress the project during 2008.
escveritas
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Re: [Australia] Gladstone LNG

Unread post by escveritas »

18th JUL 2008

Santos today confirmed the Gladstone LNG (GLNGTM) transaction announced on 29 May 2008, whereby Santos selected PETRONAS as its 40% partner in the development, operation and marketing of the GLNGTM project, has become unconditional and will therefore complete shortly.

All regulatory conditions have been satisfied, including confirmation from the Foreign Investment Review Board that it has no objection to the proposed investment by PETRONAS.

On completion, PETRONAS will pay Santos US$2.008 billion for its 40% interest in the project. A further payment of US$500 million will be made by PETRONAS upon reaching a Final Investment Decision for a second LNG train of 3mtpa capacity.
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Re: [Australia] Gladstone LNG

Unread post by escveritas »

8th APR 2008

Santos today announced the award of two parallel pre-Front End Engineering Design (pre-FEED) contracts to Foster Wheeler and Bechtel to each undertake a six month study for the Company’s Gladstone LNG™ (GLNG™) project.

The award of these contracts enables Santos to maintain its project schedule, with a decision to move to a formal FEED process anticipated by the end of this year or early next year, a Final Investment Decision (FID) by the end of 2009, and first LNG cargos early in 2014.

By appointing two contractors to separately undertake this evaluation work, Santos will consider the optimum technical design, cost and schedule implications of two different process technologies for GLNG™, namely:
  • ConocoPhillips Optimised Cascade Process (Bechtel); and
  • Air Products C3MR Process (Foster Wheeler).
Commenting on the contract award, Santos’ Acting Chief Executive Officer David Knox highlighted the progress that the company is making in the GLNG™ project.

“This is clearly a significant milestone, and further demonstrates the momentum which is building around GLNG™. Today’s dual pre-FEED contract awards have been achieved in line with the project schedule as previously communicated to the market.”

“It is pleasing to have such experienced, world class contractors appointed to the project. These organisations have been directly involved in the design and construction of the last two LNG projects built in Australia – Foster Wheeler in Western Australia, and Bechtel in Darwin.”

“Since announcing the project mid last year, Santos has made significant progress in terms of growing our upstream gas resources, securing a freehold liquefaction plant site in Gladstone, lodging key environmental approval documents, and commencing a process to secure a potential partner for the GLNG™ project.”
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Re: [Australia] Gladstone LNG

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TotalEnergies enters into an infrastructure agreement with GIP on Gladstone LNG

Paris, July 13, 2021 – TotalEnergies has completed a transaction with GIP Australia (GIP) in relation to the downstream facilities of the Gladstone LNG Project owned by its subsidiary Total GLNG Australia (TGA), for a consideration of more than US$ 750 million, with effective date January 1, 2021.

As part of this transaction, GIP will receive a throughput-based tolling fee calculated on TGA’s share of gas processed through the downstream facilities over a period of 15 years.

TGA retains full control and ownership of its 27.5% interest in the Gladstone LNG Downstream Joint Venture.

“We have worked closely with GIP to achieve this infrastructure transaction and are happy of this first collaboration with such an experienced infrastructure partner. This monetization of infrastructure assets contributes to focusing further TotalEnergies’ capital on core producing assets and fully reflects TotalEnergies’ active portfolio management”, declared Jean-Pierre Sbraire, Chief Financial Officer at TotalEnergies.

The Gladstone LNG Project

The integrated LNG project consists of producing natural gas from the Fairview, Arcadia, Roma and Scotia fields, located in the Bowen-Surat Basin in Queensland, Australia.

The project also includes transporting the gas over approximately 400 kilometers to a gas liquefaction plant in the industrial port of Gladstone, northeast of Brisbane, on the eastern coast of Australia. The Gladstone LNG liquefaction plant consists of two trains with a total nameplate capacity in excess of 7.8 million tons per year.

The downstream facilities mainly comprise the gas transportation system and the two-train gas liquefaction plant. The Gladstone LNG Project has been exporting LNG since 2015.

TotalEnergies’ activities in Australia

For over 60 years, TotalEnergies has developed in Australia a range of activities spanning the spectrum of the energy industry.

TotalEnergies is involved in 2 major Australian LNG projects: Gladstone LNG on Curtis Island on stream since 2015 and Ichthys LNG in Darwin, operational since 2018.

Total Eren (TotalEnergies 30%) commissioned the Kiamal 250 MW solar PV power plant, largest in the state of Victoria. Maxeon (TotalEnergies 27%) is focusing on distributed generation in residential segment and commercial segment. Total Gas & Power Australia has an electricity retail license and is also developing 100MW / 100 MWh Energy Storage Scheme (ESS) projects in Victoria. Saft, a wholly owned subsidiary of TotalEnergies, is managing sales of advanced technology batteries for telecommunications, transport and grid, industry standby, civil electronics and defense divisions. TotalEnergies Marketing and Services branch is active in the lubricant market in Australia.
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