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
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At October’s HPI Forecast Breakfast for our sister publication, <i>Hydrocarbon Processing</i>, I shared <i>Gas Processing</i>’s forecast on change in the LNG industry.
In one of the toughest markets in the history of gas compression, we are challenged to deliver more with less.
The New LNG Imperative
The shale gas boom established the US as the world’s leading natural gas producer and is responsible for billions of dollars of investments in the US gas processing industry. Since 2012, the US has witnessed unprecedented growth in new gas processing capacity and infrastructure. This rise is due to greater production of domestic shale gas, which is providing cheap, available feedstock to fuel the domestic gas processing, LNG and petrochemical industries. New gas processing projects include the construction of billions of cubic feet per day of new cryogenic and gas processing capacity, NGL fractionators, multi-billion-dollar pipeline infrastructure projects, and the development of millions of tons per year of new LNG export terminal construction. Attend this webcast to hear from Lee Nichols, Editor/Associate Publisher, Hydrocarbon Processing, Scott Allgood, Director-Data Services, Energy Web Atlas and Peregrine Bush, Senior Cartographic Editor, Petroleum Economist as they discuss the future of LNG and the application of Energy Web Atlas, a web-based GIS platform which allows users to track real-time information for every LNG project.
November 29, 2017 10am CST
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