The LNG storage tank at the Darwin facility is now being cooled in preparation for the first shipment, according to Santos’ latest quarterly report.

ConocoPhillips operates and owns 56.7%. The other partners include Eni 12.1%, Santos 10.6%, Tokyo Timor Sea Resources (comprising Tokyo Electric Power and Tokyo Gas) 10.1%, and Inpex 10.5%.

The partners plan to sell at least three trial cargoes into the LNG spot market before beginning contracted sales.

Tokyo Electric Power and Tokyo Gas have contracted to buy 3 million tonnes a year of LNG a year over 17 years. Under the deal, the producers can also sell some spot cargoes to other customers. Tokyo Gas also has LNG contracts with the North West Shelf project, Gorgon and the planned Pluto project.

Santos said in its report that this year it would drill the Lynedoch and Evans Shoal South gas prospects, which lie near the Caldita gas discovery in the Timor Sea-Bonaparte Gulf region.

“The Lynedoch and Evans Shoal South prospects hold significant LNG potential and provide us with the opportunity to build on the Caldita gas discover,” Santos said in the report.

Santos expects a profit of about $650 million for the 2005 year. It will report full results next month.