Total Acquires Interest in GLNG

Total has signed an agreement to acquire an additional 7.5% interest in Santos’s Gladstone LNG (GLNG) project in Australia for $281m.

The integrated LNG project consists of extracting coal seam gas from the Fairview, Arcadia, Roma and Scotia fields in the Bowen-Surat Basin in Queensland.

The project also includes transporting approximately 400km of gas to a gas liquefaction plant in the industrial port of Gladstone, north-east of Brisbane. The GLNG liquefaction plant will consist of two trains with a total production capacity of 7.2 million tonnes a year.

Kogas has signed an agreement to join the project with a 15% stake and has committed to lifting 3.5 million tonnes per year of LNG.

Petronas will also lift 3.5 million tonnes of LNG per year and a final investment decision on the project will be made in January 2011.

Once the transactions have been finalised operator Santos will hold a 30% interest, Petronas 27.5%, Total 27.5% and Kogas 15%.