GLNG signs gas agreement with AGL

The Santos Ltd.-led Gladstone LNG (GLNG) group has executed an agreement with Australian Gas Light Co. (AGL) to buy 254 petajoules of gas as feedstock for the joint venture’s LNG plant on Curtis Island near Gladstone in Queensland.

The gas will be delivered to the Wallumbilla hub east of Roma over 11 years starting in January 2017. Prices will be based on an oil-linked formula. The gas will be sourced from AGL’s coal seam gas (CSG) fields in the Surat and Bowen basins in southeast Queensland.

The agreement gives added reserves to GLNG’s diverse gas supply portfolio that already comprises supply from the group’s own CSG fields plus gas from Santos’ portfolio, underground storage gas and other third-party supplies.

GLNG shipped its first LNG cargo in October and since that time the plant’s Train 1 has already produced above nameplate capacity. Six cargoes have now left the plant.

Commissioning work on Train 2 has begun and it is on schedule to come on stream in second-quarter 2016.

Santos has 30% interest in GLNG. Other interest holders are Petronas 27.5%, Total SA 27.5%, and Kogas 15%.

LNG offtake contracts have been signed with Petronas and Kogas.

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