Santos awards FEED contract for upstream Gladstone LNG project

Uchenna Izundu
OGJ International Editor

LONDON, Aug. 5 -- Santos Ltd. let a front-end engineering design contract to Foster Wheeler to determine how it should extract and transport coal-seam gas for the upstream phase of its Gladstone LNG project in Queensland, Australia. The value of the deal was not disclosed.

Foster Wheeler will focus on delivering coal-seam gas to the transmission pipeline and associated infrastructure and services, including power generation and water treatment facilities. The work is scheduled to be finished in the first quarter of 2010.

Santos will source 170-220 petajoules/year of coal-seam gas from Fairview, Roma, and Arcadia fields in Central Queensland to a planned single train onshore LNG facility. Gladstone LNG Pty. Ltd. (GLNG) will have a 3-4 million tonnes/year LNG processing train and associated infrastructure.

In June, Santos said Petronas of Malaysia was willing to buy 2 million tonnes/year of LNG starting from 2014 with an option of an additional 1 million tonnes/year under a heads of agreement. However, this was conditional only on the GLNG project’s receiving final approval to proceed (OGJ Online, June 18).

Santos is the operator with a 60% stake in the project with Petronas holding 40%. The project is expected to cost $7.7 billion (Aus).

Contact Uchenna Izundu at uchennai@pennwell.com.

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