GAS

Santos next to join PNG Gas Project?

FOLLOWING a dramatic week for the PNG Gas project and PNG-to-Brisbane pipeline, with major sales ...

Santos next to join PNG Gas Project?

There have been persistent rumours that Santos was considering taking a stake in the PNG Gas project. Santos has declined to comment but Oil Search head Peter Botten said on the weekend that negotiations with Santos were underway.

Santos holds 25% equity in the Hides gas field, a large field close to the existing PNG Gas Project fields. The project partners aim to bring into the development as it expands and Hides is seen as being crucial to project.

According to a report in today’s Australian, Santos managing director John Ellice-Flint said last night the latest deal between AGL and the PNG Gas Project was a great opportunity for Santos to secure a market for its Hides gas.

Santos had rationalised its prospects in several areas but had retained the Hides field because of its potential, Ellice-Flint said.

Some analysts have said Santos had lost a key bargaining chip by not signing on before the project looked set to go ahead, and would probably pay a premium to become involved at this stage, according to the Sydney Morning Herald.

But the PNG Gas Project partners need Hides and they know Santos’ involvement in the development would probably be the final building block that secured its future. They also know that Santos has just agreed to pay what is considered to be a high price to take over coalbed methane producer, Tipperary.

So the existing project partners may decide they need Santos and must offer the company an affordable deal.

TOPICS:

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

editions

ENB CCS Report 2024

ENB’s CCS Report 2024 finds that CCS could be the much-needed magic bullet for Australia’s decarbonisation drive

editions

ENB Cost Report 2023

ENB’s latest Cost Report findings provide optimism as investments in oil and gas, as well as new energy rise.

editions

ENB Future of Energy Report 2023

ENB’s inaugural Future of Energy Report details the industry outlook on the medium-to-long-term future for the sector in the Asia Pacific region.

editions

ENB Cost Report 2021

This industry-wide report aims to understand current cost levels across the energy industry