Santos, Origin LNG projects to gas swap

Another sign of rationalization of the Curtis Island, Qld., coal seam gas-LNG projects has come with the Santos-led Gladstone LNG (GLNG) consortium and the Origin Energy-led Australia Pacific LNG (APLNG) group signing gas-swap and infrastructure connection agreements to improve capital and operational outcomes.

The two groups jointly announced the deal on upstream cooperation that they say will make gas transportation from the Surat and Bowen basin fields more efficient. It also will reduce the need for additional pipeline systems.

The two groups are already venture partners in a number of permits in the basins. The new agreements will enable both parties to more efficiently access and transport their equity gas so that they can meet the requirements of their respective LNG plants on Curtis Island, near Gladstone on the central Queensland coast.

The agreement will result in two pipeline connection points built between the systems of the two consortia. The first connection will be on Santos’ Fairview field to enable bidirection flow between the two projects, while a second line will link Santos’ Scotia field to APLNG’s main gas transmission trunkline.

Without these connections both projects would need a total of 140 km of additional pipelines and multiple connection points at compressor stations to deliver their gas to Curtis Island. Gas-swap will minimize gas movements and operational costs.

GLNG partners are Santos Ltd. 30%, Petronas 27.5%, Total SA 27.5%, and Korea Gas Corp. (Kogas) 15%, although Kogas has been trying to offload its share in the project for a while now. First delivery of LNG from its plant is scheduled for 2015.

APLNG includes Origin Energy with 37.5%, ConocoPhillips 37.5%, and Sinopec 25%. First LNG production will be mid-2015.

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