QUEENSLAND GAS DESTINED FOR S. AUSTRALIA

A Santos Ltd. group has agreed to the first deliveries of natural gas from Queensland fields to markets in South Australia. The agreement leaves sizable potential for expanded Queensland gas development to supply additional markets in South Australia as well as added supply increments to the initial contract. Under agreements signed last week, the Santos group will supply the Adelaide area with 300 petajoules of gas, or about 280 bcf, from Queensland fields. Pipeline Authority of South

July 22, 1991

2 min read

A Santos Ltd. group has agreed to the first deliveries of natural gas from Queensland fields to markets in South Australia.

The agreement leaves sizable potential for expanded Queensland gas development to supply additional markets in South Australia as well as added supply increments to the initial contract.

Under agreements signed last week, the Santos group will supply the Adelaide area with 300 petajoules of gas, or about 280 bcf, from Queensland fields.

Pipeline Authority of South Australia will buy the gas for resale to Electricity Trust of South Australia and South Australian Gas Co.

The deal calls for construction of a 200 km pipeline from undeveloped fields in the Cooper/Eromanga basins-some of which have remained shut-in since the early 1970s-across the border to the big Moomba gas processing complex in northeastern South Australia. From there, gas will move via the existing South Australia trunk line to Adelaide.

Start of deliveries is expected by January 1994.

The Santos group expects to spend $150-180 million (Australian) to develop Cooper/Eromanga proved and probable reserves pegged at a combined 1 tcf.

OTHER PROJECT DETAILS

Plans also call for production of about 5,500 b/d of condensate from the fields.

Condensate will be stripped from the gas stream and move through the existing liquids pipeline from Jackson field in southern Queensland to Brisbane on Australia's eastern coast.

The Santos group will build a plant at Ballera, Queensland, about 60 km from Jackson, to strip condensate and condition gas for transport to Moomba. Any liquid petroleum gases extracted at Moomba will be sent through a separate liquids line to Port Bonython on Spencer Gulf in South Australia.

Meantime, the Santos group is well advanced in negotiations with Mount Isa Mines covering proposed supply of Queensland gas for power generation in the big mining complex and surrounding region.

Santos and its subsidiaries hold 57.65% interest in the project, Delhi Petroleum Party Ltd. 23.25%, Sagasco Resources Ltd. 17.16%, Australian Hydrocarbons NL 1.2%, Claremont Petroleum NL 0.37%, Ampol Exploration Ltd. 0.28%, and Oil Co. of Australia NL 0.09%.

Project equity levels will change over time because of varying equity interests in the fields.