Santos (ASX:STO) has secured loans worth $2 billion from nine banks for its liquefied natural gas (LNG) plants in central Queensland and Papua New Guinea.
The construction of the Gladstone project in Australia and the new one in Papua New Guinea are expected to benefit from the loan.
Peter Wasow the Chief Financial Officer and the executive vice president of Santos said that the funds would be used to refinance a $700 million facility that matures between 2011 and 2013, and to expand its LNG portfolio, particularly the $8 billion Gladstone LNG project in Queensland.
This would give Santos about $6 billion to play around with in terms of cash, corporate and project debt facilities. However it may need more funds to meet the requirements of the $8 billion Gladstone project.
The project was the subject of environmental concerns until last week. Queensland's Co-Ordinator-General had previously expressed concerns about the companies' water management strategies and the potential threat to the Great Artesian Basin.
Santos is engaged in the exploration, development, production, transportation and marketing of hydrocarbons. The Company operates in four business units: Eastern Australia, Western Australia and Northern Territory (WA & NT), Asia Pacific, and Gladstone LNG (GLNG). It has assets and projects throughout Australia and the Asia-Pacific region.