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Santos Gladstone liquefied natural gas project, Australia

21st February 2014

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

  

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Name and Location
Santos Gladstone liquefied natural gas (GLNG) project, Queensland, Australia.

Client
The GLNG project is a joint venture between the operator, Santos (30%), Petronas (27.5%), Total (27.5%) and Korea Gas Corporation (15%).

Project Description
The Santos GLNG project is a pioneering venture to convert coal seam gas (CSG) to liquefied natural gas (LNG) for export to global markets.

It includes the development of CSG resources in the Bowen and Surat basins, in south-east Queensland, the construction of a 420 km underground gas transmission pipeline to Gladstone, and two LNG trains, with a combined nameplate capacity of 7.8-million tonnes a year, on Curtis Island.

Value
$18.5-billion.

Duration
The first LNG will be delivered in 2015 and plateau production of the LNG plant is expected to be reached in 2016 and be maintained for more than 20 years.

Latest Developments
The Santos GLNG project is 75% complete and on track for the first shipment of LNG to sail out of Gladstone Harbour, in Queensland, next year.

Santos GLNG has already achieved several construction milestones in 2014.

On Curtis Island, where the LNG plant is being constructed:
• the 4.3 km pipeline tunnel under Gladstone Harbour has broken through to Curtis Island from the mainland after ten months of tunnelling. The tunnel will now be lined, flooded, and the pipeline floated and pulled through. The entire 420 km pipeline is due to be completed in the next few months.
• the final three of the 82 modules, which will be joined to form the first LNG train (processing unit), are being completed and more than 90% have been delivered to Curtis Island from the module construction yard in the Philippines.
Meanwhile, all of the 29 modules required for the second train are under construction. The trains will liquefy gas by cooling it to -162 °C for transportation by ship to Malaysia and Korea starting next year.

In the gasfields around Roma and Fairview:
• construction of the largest gas-processing hub in the Fairview field – Fairview 4 – is advancing apace. The hub will compress gas for it to be sent along the 420 km pipeline to Curtis Island.
• the Fairview 4 hub’s water desalination plant has recently been completed, and the construction team is currently focused on the hub’s electrical switchrooms and utility systems.
• 410 km of the 420 km gas transmission pipeline have been buried and 282 km of the pipeline route are under rehabilitation. First commissioning gas is due to be piped to Curtis Island around the middle of this year.

Key Contracts and Suppliers
Fluor Corporation (engineering, procurement and construction (EPC) services for upstream facilities); Saipem (construction of the gas transmission pipeline) Bechtel (construction of the LNG plant).

On Budget and on Time?
The project is on track

Contact Details for Project Information
Santos GLNG project, tel +61 07 3838 3000, fax +61 7 3862 3722 or email info@glng.com.au.

Edited by Creamer Media Reporter

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