GLNG signs gas purchase agreement with AGL: Santos

BRISBANE, Queensland -- The GLNG project participants have executed an agreement with AGL Energy Ltd. (AGL) for the purchase of 254 petajoules of gas for supply to the GLNG project, Santos, the project’s operator, has announced.

The gas will be delivered at Wallumbilla, Queensland, over a period of 11 years commencing in January 2017, with pricing based on an oil-linked formula. The gas will be sourced from coal seam gas fields in Queensland.

Rod Duke, V.P., Downstream, GLNG, said the agreement with AGL adds to GLNG’s diverse gas supply portfolio, comprising supply from GLNG’s own coal seam gas fields, Santos portfolio gas, underground storage and third party supply.

“When combined with GLNG’s quality LNG off-take contracts with project partners PETRONAS and KOGAS, this supply portfolio delivers significant value to the project,” Duke said. “Since our first LNG cargo in October, ramp-up of LNG train 1 has progressed well with the train having already produced well above nameplate capacity. Six LNG cargoes have already been shipped to our customers.”

“Commissioning work on GLNG’s second LNG train has commenced with a number of its subsystems now operational, and we are on track for first LNG from train 2 in the second quarter of 2016,” Duke said.

Santos has a 30% interest in GLNG. The other participants are PETRONAS (27.5%), Total (27.5%) and KOGAS (15%).