Santos is getting ready to sell 15% of its stake in a Gladstone liquefied natural gas project before it commits to the first phase later this year. The third largest oil and gas producing company in Australia is calling for a trading halt as it enters negotiations with Total.
The Gladstone project is currently owned 60% by the Adelaide based Santos and 40% by Petroliam Nasional Bhd. The Malaysian state owned company Petronas is also selling a 5% interest in the Gladstone LNG project to Total. This will give Total a 20% stake on the completion of all transactions leaving Santos with 45% and Petronas with 35%.Total will be a fully intergrated joint venture partner in the project.
Korea Gas is the world's largest LNG importer and has an interest in the Gladstone project to organize a stable supply of cleaner burning fuel. Korea Gas is close to purchasing a 10% stake in the Santos venture production in LNG for $1.5 billion.
There is considerable competition as BG Group Plc, Origin Energy Ltd and Royal Dutch Shell Plc are also planning projects in Queensland to convert coal seam gas to liquid for export to Asia.