Oil and Gas News

Santos closer to QLD gas exports

Santos is getting closer to the goal of a first shipment of gas from Curtis Island, with processing hubs near Roma now operational.

CEO David Knox has said the first cargo of gas from the GLNG processing plant will be delivered in 2015, APN reported.

The pipeline from Roma has been filled with methane gas, an important step in ensuring the operational performance of the 420km conduit.

Knox said Santos would be ready to export as soon as the company’s Curtis Island plant was operational.

“Very clearly this is a hugely important step to ensure we deliver our first cargo in 2015,” he said.

“When you combine that with the fact we’ve now gassed up our pipeline that’s another very significant milestone.

Santos Queensland vice-president Trevor Brown said planning had been done about the workforce reduction in the wind-up of the construction phase on Curtis Island.

More than 500 Santos employees will remain on the GLNG project in an operational capacity.

Brown said that more than $1 billion a year would be spent on continued development for the next five years, followed by $500 million a year after that.

Knox said while at full capacity, Santos would be able to meet the full demand for gas on Australia’s east coast.

However Santos will not supply Australia with gas from Queensland, as 20-year export contracts to Malaysia and Korea have already been signed.

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