Rick Wilkinson
OGJ Correspondent
MELBOURNE, July 19 -- Santos Ltd., Adelaide, proposes to build a 3-4 million tonne/year LNG plant in Gladstone, Queensland, to be fed by its coalbed methane reserves in the state.
The move follows a similar proposal from Arrow Energy Ltd., Brisbane, last May in which it agreed to supply CBM to a planned 1 million tonne facility, also in Gladstone.
Santos says its $5-7 million (Aus.) project would produce $1 billion a year in export revenue.
Santos has concluded an agreement with the Port of Gladstone Authority for a site on Curtis Island to locate the LNG export facilities, following extensive feasibility and site selection studies during the past 18 months.
Santos, which said it has more than 5,000 petajoules (4.65 tcf) of CBM reserves and contingent resources, sees Gladstone LNG as a natural extension of the company's core gas business. If the plant is built, Santos would supply 170-220 petajoules (158-205 bcf) of CBM from its Surat and Bowen basin permits.
A final investment decision is expected by the end of 2009, and first LNG production could begin in early 2014.
