GLNG Partners Approve $16bn Queensland Project

Santos, Petronas, Total and Kogas have taken the final investment decision for developing the $16bn Gladstone LNG (GLNG) project near Gladstone in Queensland, Australia.

The approval paves the way for major works for upstream field development, a pipeline and LNG plant facilities at Gladstone.

Orders for the project will now be placed for long-lead items such as a line pipe, compressors and LNG plant components.

GLNG includes the development of coal seam gas resources in the Bowen and Surat Basins in south-east Queensland and the construction of a 420km gas transmission pipeline from the gas fields to Gladstone.

The development also covers two LNG trains with a combined capacity of 7.8 million tonnes a year (mtpa) on Curtis Island.

First LNG exports are expected to begin in 2015. GLNG already has sales agreements in place with Petronas and Kogas for 7mtpa in aggregate.

GLNG is a joint venture between Santos (with a 30% stake), Petronas and Total (27.5% interest each) and Kogas (15%).