(EnergyAsia, October 30 2013, Wednesday) — The Australian developers of two large separate natural gas projects in Queensland state have agreed to swap product and share infrastructure to speed up implementation as well as save hundreds of millions of dollars in construction, operating and maintenance costs.
The operators of the Santos GLNG and Australia Pacific LNG consortia said the agreements will increase operational flexibility, reduce their cost of delivering coal seam gas (CSM) from their respective projects in the Surat Basin to liquefied natural gas (LNG) terminals, and cut down the need for additional pipeline infrastructure.
Santos, which holds a 30% stake in GLNG, and Origin Energy, the upstream operator of the APLNG project, are joint venture partners in a number of permits in the Surat and Bowen Basins, and the agreements will enable both to more efficiently access and transport their equity gas to meet the requirements of their CSG to LNG projects.
The first pipeline connection located on the Santos-operated Fairview gas field north of Roma will enable significant volumes of gas to flow in both directions between the two consortia.
The second pipeline will connect the Santos GLNG Scotia gas field, east of Roma, to Australia Pacific LNG’s main gas transmission pipeline.
“Without this agreement both projects would need a total of 140km of additional pipelines and multiple connection points at compressor stations to each deliver its gas to Curtis Island,” said Santos.
Describing the agreement as “a win-win for both projects”, Trevor Brown, Santos’s vice president for Queensland, said it places the GLNG consortium in a “strong position” to meet its deadline to begin LNG delivery in 2015.
Santos’s partners in the GLNG project include Malaysia’s Petronas, France’s Total and South Korea’s Kogas while APLNG is a joint venture between Origin Energy, ConocoPhillips of the US and China’s state-owned Sinopec.