Santos Inks Deal to Buy Gas From Meridian SeamGas JV

Santos on Thursday announced that the GLNG project participants have executed a binding heads of agreement with the Meridian SeamGas joint venture for the purchase of gas for supply to the GLNG project.

The agreement will commence in 2015 for gas supply over a 20 year period. The gas price will be oil-linked from 2016.

The gas will be supplied from the Meridian gas fields in Queensland and delivered into GLNG’s gas transmission pipeline, which passes adjacent to the fields.

The Meridian fields are a joint venture between WestSide Corporation (51% and operator) and Mitsui E&P Australia (49%). The fields have a current installed compression capacity of 30 terajoules of gas per day.

Vice President Downstream GLNG Rod Duke said the GLNG project was approaching 80% complete and remains on schedule and budget for first LNG in 2015.

The GLNG project is an $18.5 billion development to convert coal seam gas to LNG. Santos has a 30% interest in the project. 

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