GLNG secures more gas

PERTH (miningweekly.com) – The Gladstone liquefied natural gas (GLNG) participants have executed a sales agreement with AGL Energy to purchase 254 petajoules of gas for supply to the GLNG project.

The gas would be delivered at Wallumbilla over a period of 11 years starting in January 2017, with pricing based on an oil-linked formula.

The gas will be sourced from coal seam gas fields in Queensland.

GLNG VP for downstream Rod Duke said the agreement with AGL added to GLNG’s diverse gas supply portfolio, comprising supply from GLNG’s own coal seam gas fields, Santos portfolio gas, underground storage and third-party supply.

“When combined with GLNG’s quality LNG offtake contracts with project partners Petronas and Kogas, this supply portfolio delivers significant value to the project.”

“Since our first LNG cargo in October, ramp-up of LNG train 1 has progressed well with the train having already produced well above nameplate capacity. Six LNG cargoes have already been shipped to our customers.”

“Commissioning work on GLNG’s second LNG train has commenced with a number of its subsystems now operational, and we are on track for first LNG from train 2 in the second quarter of 2016,” Duke said.

The $18.5-billion GLNG project involved the development of gasfields from the Bowen and Surat basins in south-western Queensland and transporting the gas through a 420 km underground pipeline to a two-train LNG plant on Curtis Island, off the coast of Gladstone, with the capacity to produce 7.8-million tonnes of LNG a year at full capacity.

The project is jointly owned by ASX-listed Santos, which has a 30% interest in GLNG, and Petronas, which holds 27.5%, Total, which also holds 27.5%, and Kogas, which holds a 15% share.