Project Snapshot
Gladstone LNG (GLNG)
Facility Type: LNG
Scope: New Construction
Owner: Santos Ltd. (60%; operator); Petronas (40%)
Location: Gladstone, Queensland  Australia
Region: Australasia
Modified:  June 05, 2009

Project description

Through their Gladstone LNG (GLNG) project, Santos Ltd. and Petronas have proposed developing what would be the world's first large-scale coal seam gas (CSG) to liquefied natural gas (LNG) project. Santos and Petronas own 60% and 40% stakes, respectively, in the joint venture.

The project calls for producing CSG from the Surat and Bowen Basin gas fields in the interior of Australia's Queensland state and shipping it to Curtis Island near the central coastal city of Gladstone via a 425-km-long gas pipeline. On Curtis Island, the JV would build and operate a gas liquefaction and export facility and associated infrastructure. The liquefaction plant's initial capacity would be 3-4 million tonnes per annum (mtpa) but could be expanded to 10 mtpa.

According to Santos, major customers in Asia and the United States have expressed interest in purchasing LNG from the project, which would create 3,000 construction jobs and support more than 200 jobs during operations.

In December 2008, Santos and Petronas named Bechtel the front end engineering design (FEED) contractor for the downstream components of GLNG. Previously, Bechtel and Foster Wheeler had competed in a six-month duel pre-FEED process. The JV anticipates making a final investment decision on GLNG in the first half of 2010. Should it go forward, first cargoes of LNG are anticipated in 2014.

  Key Stats
Major units:
single processing train and associated infrastructure
3-4 million tonnes per annum (mtpa); possibly up to 10 mtpa
Foster Wheeler (pre-FEED); Bechtel (pre-FEED; FEED)
  Related Articles
GLNG Project's LNG Train 1 Moves Nearer to Completion
Apr 03, 2014 - Santos reports that LNG Train 1 of GLNG project in Queensland, Australia gets nearer to completion as the final three modules arrived in Curtis Island.
KOGAS Drops Plans to Sell Stake in Australia LNG Project
Feb 27, 2014 - State-run Korea Gas Corp said on Thursday that it has decided not to sell its stake in Australia's $18.5 billion Gladstone LNG (GLNG) project.
Santos Says GLNG Signs Gas Purchase Agreement with Origin Energy
Dec 19, 2013 - Australia's Santos Ltd has signed a second gas purchase agreement with rival Origin energy to help supply its Gladstone liquefied natural gas (LNG) export plant in eastern Australia, Santos company said on Thursday.
KOGAS Considers Selling Stake in Australia LNG Project
Sep 26, 2013 - State-run Korea Gas Corp is considering selling at least part of its 15 percent holding in the $18.5 billion Gladstone LNG (GLNG) project, the South Korean company told the stock exchange in a filing on Thursday.
BG Says Australian LNG Project on Budget
May 29, 2013 - Attempting to calm investor fears of more cost blowouts, the head of BG Group PLC's Australian unit said Wednesday the company's US$20.4 billion gas-export plant in Queensland state will be completed in line with its revised budget.
Protests Threaten CSG-to-LNG Progress in Australia
Jan 16, 2013 - An environmental protest movement against hydraulic fracturing could cripple the development of Australia's CSG to LNG industry.
Arrow Energy CEO Says Queensland LNG Invest Decision Due 2013
Oct 18, 2012 - Shell and PetroChina are on course to approve construction of a multibillion dollar gas-export project in eastern Australia next year, shrugging off fears that cost pressures or a supply glut will delay the venture.
Skills Shortages, Rising Costs Threaten Australia Projects
Sep 19, 2012 - Federal Resources Minister Martin Ferguson is wary about whether Australia can secure the next phase of the liquefied natural gas boom.
Santos Reports $2.5B Increase in GLNG Price Tag
Jun 28, 2012 - Santos confirms that its GLNG project will face a 16% cost increase. The company's latest estimate of its GLNG project cost is $18.5B.
Fluor Awards Clough Downer GLNG Contract
Sep 15, 2011 - The Clough Downer JV has been awarded a circa $600MM unit rate re-measurable contract by Fluor for construction of pipelines, compression facilities and associated infrastructure relating to the Fairview component of the Santos GLNG project.
Wood Group Wagners Wins GLNG Project Management Contract
Jun 09, 2011 - Wood Group Wagners has been awarded the Project Management Services Contract for the GLNG Pipeline Project in Queensland, a development that will process coal seam gas (CSG) into liquefied natural gas (LNG).
GLNG Construction Begins
May 27, 2011 - Australian Prime Minister Julia Gillard on Friday officially launched works on the Santos GLNG liquefied natural gas plant in Queensland.
Australia's John Holland Wins $151M Subcontract for GLNG Project
Mar 24, 2011 - Australia-based John Holland says it has been awarded a A$150 million (US$151.17 million) subcontract to build marine offloading facilities for the proposed Curtis Island liquefied natural gas (LNG) facility off Queensland.
BG Halts Pipeline Work for $15B Australia LNG Project
Mar 23, 2011 - BG Group has halted construction of a pipeline connecting gas fields in Queensland state to its planned US$15 billion gas export terminal on the coast.
Kogas May Sell 10% Stake in Gladstone LNG
Feb 09, 2011 - South Korean state-run utility Korea Gas Corp., or Kogas, said Wednesday that it may sell around a 10% stake in the Gladstone liquefied natural gas project in Australia to Korean or Japanese companies.
Australia's LNG Ltd to Sell 20% Stake to CNPC
Jan 28, 2011 - Shares in Australia's Liquefied Natural Gas Ltd (LNG) are up over 10 percent as the company confirmed it has agreed to sell a 20-percent stake to Chinese state-owned oil and gas giant CNPC for around A$25.6 million (US$25.35 million).
Santos Awards Fluor $3.5B GLNG Contract
Jan 18, 2011 - Santos has awarded Fluor an EPC contract for the Gladstone LNG project in Queensland, Australia.
Saipem to Build Pipeline to Gladstone
Jan 14, 2011 - Saipem has been awarded new onshore contracts worth approximately US$1 billion.
GLNG Partners Sanction Project
Jan 13, 2011 - Total and its partners Santos (operator), Petronas and Kogas announce the sanction of the GLNG project in Australia, representing a 16 billion dollars investment.
Recovery from Floods to Tighten Labor Supply for GLNG
Jan 13, 2011 - Santos' A$16 billion (US$15.89 billion) gas project in Queensland will face a challenging time securing labor as the state rebuilds from the floods, federal Resources Minister Martin Ferguson says.
Santos Confirms Talks with Kogas for Gladstone LNG Stake
Dec 16, 2010 - Santos is in discussions but has not reached an agreement with Kogas for the purchase of a stake in the Gladstone LNG project.
Santos to Supply Conventional Gas to Gladstone LNG
Oct 25, 2010 - Santos Ltd. (STO.AU) said Monday that it will supply conventional natural gas from interests in the Cooper Basin to its proposed gas export joint venture in Queensland state.
Australia Okays Queensland LNG Projects with Conditions
Oct 22, 2010 - Australia approved Friday two groundbreaking gas export projects in Queensland state that will tap resources held in coal seams.
Total to Acquire 20% Stake in GLNG
Sep 09, 2010 - Total announces the signature of an agreement with Santos and Petronas to acquire a 20% interest in the GLNG project in Australia, for US$750 million dollars (as of June 1, 2010), Santos and Petronas transferring 15% and 5% respectively to Total.
With Govt Tax Concessions, Queensland LNG Back On Track
Jul 02, 2010 - A green light for two Australian liquefied natural gas projects worth over A$20 billion is imminent.
Australia's LNG Ltd. Gets CASA Nod for Gladstone
May 25, 2010 - Liquefied Natural Gas Ltd says it's been given the all-clear from the Civil Aviation Safety Authority (CASA) to proceed with developing its planned LNG project at Gladstone, Queensland.
WoodMac: RSPT May Inhibit Progress of Aussie LNG Sector
May 20, 2010 - A Wood Mackenzie analyst earlier this week stated that the prospects for Australian LNG are good with production set to grow, potentially by up to five times.
Fluor Wins Gladstone LNG Project
May 14, 2010 - Santos appointed Fluor Australia as the preferred contractor to carry out Engineering, Procurement and Construction (EPC) of the upstream facilities component of the GLNG project.
Santos-Petronas JV Set To Green Light Gladstone Construction
Feb 18, 2010 - Santos Ltd. said Thursday its joint venture with Petronas will officially green light the construction of their Gladstone LNG project even if they don't find a second customer before a midyear deadline.
Santos Expects Mid-2011 Decision on Gladstone Expansion
Dec 09, 2009 - Santos Ltd. expects to green light an expansion of its gas export joint venture at Gladstone in Queensland state to two production units in mid-2011, continuing the bullish flow of news out of Australia's burgeoning liquefied natural gas sector.
Origin: Gladstone LNG Mergers 'Extremely Unlikely'
Oct 30, 2009 - Origin Energy Ltd. Chief Executive Grant King on Friday played down the potential for mergers to occur between proposed LNG projects at Gladstone in Queensland state.
Santos, Petronas Unveil Apprenticeship and Training Plan for GLNG
Oct 29, 2009 - Australian energy company Santos and partner Petronas on Thursday unveiled a $50 million plan to generate up to 100 new apprenticeships and trainee positions to help deliver their Gladstone Liquefied Natural Gas project, GLNG.
Golar To Sell Gladstone Train 1 Production To Toyota Tsusho
Sep 17, 2009 - Golar Energy announced Thursday that it has signed a Heads of Agreement with Toyota Tsusho Corporation of Japan (Toyota Tsusho) for the sale of all of the production from the first train of Gladstone LNG.
Golar LNG Announces Q2 Earnings
Aug 28, 2009 - Golar LNG Limited on Friday reported a net income of $11.9 million and operating income of $1.9 million for the three months ended June 30, 2009 (the "second quarter").
Fluor To Perform FEED for Landmark LNG Project
Jul 27, 2009 - Fluor Corp. announced Monday that it was awarded a contract to perform front-end engineering and design (FEED) services for Santos Limited's Gladstone Liquefied Natural Gas (GLNG) Upstream Project in Queensland, Australia.
Australian Minister Expects Gladstone LNG Mergers
Jun 01, 2009 - Australia's Minister for Energy & Resources expects consolidation to occur between LNG plants planned for construction at Gladstone in Queensland state.
Santos First To Submit EIS In Gladstone LNG Race
Mar 30, 2009 - Santos Ltd. Tuesday threw down the gauntlet to its competitors in the liquefied natural gas space.
Work To Start This Year on Gladstone LNG Plant
Feb 26, 2009 - A Western Australian company says it is hoping to start construction later this year on the first liquefied natural gas plant for the Gladstone region on the central Queensland coast.
Golar Signs HOA for Gladstone Project
Feb 20, 2009 - Golar LNG Ltd on Friday announced the signing of a Heads of Agreement (HOA) with Liquefied Natural Gas Ltd (LNG Ltd) covering the joint development of a project to produce LNG from Coal Seam Gas (CSG) in Gladstone, Australia.
Bechtel Wins Gladstone LNG Contract
Dec 22, 2008 - Santos and Petronas on Monday announced the appointment of Bechtel, a world leader in the construction of LNG plants, as the Front End Engineering Design (FEED) contractor for the downstream components of Gladstone LNG (GLNG).
Queensland Gas: Two Trains Likely for Gladstone LNG
Oct 17, 2008 - Coal seam gas producer Queensland Gas Company Ltd (QGC) says it is confident that it will build at least two production trains and possibly three at its proposed Gladstone liquefied natural gas plant in Queensland, in alliance with BG Group Plc.
Queensland Gas Lifts Reserves for LNG Project with BG
Sep 18, 2008 - Queensland Gas Company Ltd (QGC) has increased the gas reserves required for a proposed $8 billion liquefied natural gas (LNG) development with BG Group Plc.
Queensland Premier Outlilnes Gladstone LNG Challenges
Sep 12, 2008 - Premier Anna Bligh has told Parliament that Gladstone, in central Queensland, faces a number of issues as the liquefied natural gas (LNG) industry is developed.
Santos, Petronas Receive Approval for Gladstone LNG Partnership
Jul 18, 2008 - On completion, Petronas will pay Santos US $2.008 billion for its 40% interest in the project. A further payment of US $500 million will be made by Petronas upon reaching a Final Investment Decision for a second LNG train of 3mtpa capacity.
Asian Demand Boosting LNG Plans
Jun 16, 2008 - The latest company proposing to build another liquified natural gas (LNG) plant in Gladstone says demand in Asia is spurring on the development.
Bligh Stresses Strength of Gladstone LNG Industry
Jun 05, 2008 - Queensland Premier Anna Bligh says the liquefied natural gas (LNG) industry in Gladstone keeps looking stronger and stronger.
Santos, Petronas To Form Gladstone JV
May 29, 2008 - Following a worldwide tender process, Santos has selected Petronas, one of the world's largest LNG producers, to be its 40% partner in the development, operation and marketing of the company's proposed Gladstone LNG (GLNGTM) project.
Santos Awards Gladstone LNG Contract To Foster Wheeler
Apr 16, 2008 - Foster Wheeler Energy Limited has been awarded a contract to undertake a six-month study for the pre-FEED for Santos Ltd.'s planned Gladstone LNG project in Queensland, Australia.
Santos Taps Contractors for Gladstone LNG Project
Apr 08, 2008 - Santos Ltd. said Tuesday that it has appointed Foster Wheeler and Bechtel to study the pre-FEED work for its Gladstone LNG project for six months.
Work to Begin on Gladstone LNG Plant
Jan 18, 2008 - Liquefied Natural Gas (LNG) Limited will begin preliminary work on the site of its proposed plant at Fishermans Landing at Gladstone, in central Queensland, on Monday.
Santos Proposes Gladstone LNG Project
Jul 18, 2007 - Santos Ltd. on Wednesday announced a proposal to construct a liquefied natural gas (LNG) facility at Gladstone in Queensland, which would see coal seam gas processed and sold into export markets.
High Demand Expected for Gladstone LNG
Jun 04, 2007 - A proposed $350 million LNG plant to be built in the central Queensland city of Gladstone is not only a first for Australia's east coast, but will also diversify the city's industrial base.

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