Oil and gas producer Santos has officially started production of liquefied natural gas (LNG) from its operations at Curtis Island, off the coast of Gladstone, Queensland.
LNG is currently being produced from Train 1, while Train 2 is expected to be ready for start up by the end of the year.
“We said we’d produce first LNG around the end of the third quarter, and that’s exactly what we’ve done. Our upstream facilities are fully operational and performing well, we’re producing LNG on Curtis Island, and we’re now looking forward to safely delivering our first LNG cargo in the coming weeks,” said Santos Managing Director and Chief Executive Officer David Knox.
“Project revenue is underpinned by binding long-term LNG sales contracts covering more than 90% of the plant’s capacity. I would like to thank our joint venture partners, PETRONAS, Total and KOGAS for their support in the successful delivery of this major milestone. Production from GLNG will be a significant addition to Santos’ growing LNG portfolio, which already includes the Darwin LNG and PNG LNG projects.”
Acting Treasurer Kate Jones congratulated Santos and its GNLG partners for starting production on time and within budget.
“The GLNG operation is a great advertisement for Queensland’s natural resources sector, and we welcome such an important milestone. This consortium is a key player in the state’s $60 billion LNG export industry and we look forward to the day when GLNG shipments commence,” said Ms Jones.
“These shipments will earn Queensland important export income and successive State Labor Governments, including the Palaszczuk Government, are proud of the role we’ve played in supporting our growing LNG export industry.”
The $US18.5 billion project involves a 420-kilometre gas transmission pipeline from the Surat and Bowen Basins connecting through to Gladstone and a two-train LNG plant on Curtis Island which will have the capacity to produce 7.8 million tonnes of LNG per year when fully operational.
Santos is the operator and has a 30% interest in the project. Other co-venturers include PETRONAS (27.5%), Total (27.5%) and KOGAS (15%).