Gladstone: where most coalbed methane action is taking place for Australia.
Santos rules out CBM tie-up
Australian independent Santos’ chief David Knox said the oil and gas producer is unlikely to team up its proposed coalbed methane export project in Australia with rival developments.
Asked if Santos would sell its assets in the Cooper Basin in South Australia, Knox said, "Certainly it’s not on our base plans right now."
Santos is a partner with Malaysia's state-owned Petronas for a proposed 3.6 million tonnes per year liquefied natural gas export project, to be built at the Gladstone port in the north east state of Queensland.
There are four other planned projects that are also planning to use coal seam gas a feedstock and Santos has previously said that it was open to consolidating its project with others, according to a Reuters report.
Knox was speaking at a business lunch in Melbourne. He said the company is in "detailed and advanced" talks with a number potential Asian customers for liquefied natural gas produced from its proposed Gladstone LNG plant in Queensland state.
Santos has already agreed to sell 2 million tonnes a year of LNG to Petronas, with an option to go up to 3 million tonnes.
Knox said current negotiations are focused on both the project's proposed 3.6 mtpa LNG production trains, according to a Dow Jones report.