Santos diverts some gas from export to shore up Australian market
(Reuters) — Australia's Santos Ltd said it would divert 30 petajoules (PJ) of gas from its Gladstone LNG export plant to customers on the country's east coast over the next 2yr, hoping to avert curbs on LNG exports.
Shares of the company rose as much as 1% to A$3.94 in early trade on Thursday, its highest since Feb. 24.
Australia is on track to become the world's biggest LNG exporter by 2019, straining supplies in the domestic market and driving up gas and power prices.
To help ease soaring energy prices, the government has put in place a controversial measure to curb LNG exports from the east coast if it deems there is likely to be a shortfall of domestic gas supply in any year.
Santos said its Gladstone LNG partners had agreed to divert 30 PJ of gas to the local market.
Thursday's announcement follows Santos' deals to deliver up to 72 PJ of gas over four years into the southeastern market through a swap agreement and the sale of 15 PJ to the Pelican Point Power Station in South Australia.
Reporting by Chris Thomas in Bengaluru; Editing by Richard Pullin
According to GIIGNL’s 2018 Annual Report, global LNG trade expanded by 3.5 Bft3d in 2018, to 38.2 Bft3d—a record 10% increase.
Power, LNG projects drive pipeline construction in Africa
Increasing public investment in gas-fired power plants in Africa, the continuing recovery in global oil prices and persistent insecurity in key producer markets, such as Nigeria, are likely to impact gas transmission pipeline projects on the continent, even as more international companies express interest in the region’s stranded gas resources.
Maximize Profitability with Advanced Analytics at Natural Gas Processing Plants
Incorporating economic data into process modeling is key to optimizing operations and maximizing profits at gas processing plants. However, maintaining optimal operations are often challenging due to changing market dynamics, contract structures and increasing process flexibility. Today, gas processors are leveraging Predictive Control and First Principles models to accurately determine and control the optimal operating targets in real time based on the most current plant conditions and profitability, optimizing recovery of natural gas liquids. Learn how real-time analytics, combined with decision support tools, empower companies to:
•Improve processing margins by up to 5%
•Maximize NGL production through improved availability and optimized process conditions
•Improve compositional control to operate closer to product specifications
May 22, 2018 10am CDT