Santos to share CSG to LNG plant with Total
Posted by Big Gav in australia, coal seam gas, santos, total
The SMH has a report on total buying into a Queensland coal seam gas project - Santos shares slump on LNG stake sale.
French energy giant Total has emerged with a 20 per cent stake in the $7.7 billion Gladstone liquefied natural gas project (GLNG) after 60/40 joint venture partners Santos and Malaysia’s Petronas sold down part of their stakes.
Santos, which agreed to sell a 15 per cent stake for $650 million, said this was the first major investment by Total in an LNG project using unconventional gas - in this case coal seam gas. ...
IG Markets market strategist Ben Potter said the Total deal surprised investors. ‘‘Most were expecting Santos to sell a stake to Korea Gas ... amid widespread speculation it was poised to take a 10 per cent stake,’’ Mr Potter said. ‘‘It seems the market is worried that the rate was at a discount to what Petronas paid for its original stake in the JV two years ago.’’
Santos managing director David Knox the deal with Total was a landmark agreement for the Australian LNG industry. ‘‘We are pleased to welcome Total into the GLNG project as a fully integrated joint venture partner,’’ Mr Knox said in a statement.
Total is one of the world’s largest LNG producers with interests in eight producing LNG projects and one under construction. It also has an interest in the Inpex-led Icthys LNG project in Western Australia’s Browse Basin.
State-owned oil company Petronas said it had entered into an agreement to sell a 5 per cent interest in the GLNG project to Total, which is the world’s fourth largest listed natural gas producer.
Santos, which previously held 60 per cent of GLNG (and Petronas 40 per cent) on Thursday also flagged further deals related to the project with Asian parties.