Santos GLNG, QCLNG projects ink deal for gas interconnect

Two of the coal seam gas-to-LNG schemes at Gladstone on Queensland’s central-west coast have inked a deal that will enable them to swap gas through two interconnection points if required.

The Santos GLNG project and the BG Group’s Queensland Curtis LNG (QCLNG) project signed an agreement that supports plant operation flexibility and efficiency. The agreement links both projects in two places. One is on the western side of The Narrows, which is the strait between Curtis Island and the mainland. The other is on Curtis Island itself.

The interconnection points will enable gas to flow from one project to the other when, for example, there is LNG plant downtime or planned maintenance in either company’s facilities. The agreement enables this to occur without interrupting the project’s gas field operations back down the line.

Having two interconnects provides additional flexibility over the lifetimes of both projects and gives more options to plant operators for moving gas.

The net result is that GLNG and QCLNG will be able to buy, sell, and swap gas during scheduled and unscheduled events, maximising plant productivity.

Construction of the two interconnection points on adjoining easements is slated for completion next year.

A similar deal is expected between QCLNG and the third project in Gladstone, namely that of the Origin Energy Ltd.-led Australia Pacific LNG.

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