Managing director John Ellice-Flint said there had been "strong preliminary interest" from "supermajors and national oil companies" and an evaluation process is under way, though he would not divulge any company names.

Santos seeks to commercialise its coalbed methane reserves onshore Queensland and export an initial 3 million to 4 million tonnes per annum of LNG from 2014.

CBM has never been used before as a feedstock for an LNG project, but this has not discouraged Santos and other companies in pushing for separate CBM-to-LNG schemes in Queensland.

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