In a presentation to US investors in New York on Tuesday, the Adelaide-based major said this gas output would be transported via a 260-mile (418km) pipeline to the 3-4 million tonnes per annum liquefaction plant at the Port of Gladstone in central Queensland.

From there, the LNG would be transferred to storage tanks before being shipped to export markets.

"We've had a lot of interest in this project since the announcement, from buyers, not only in Southeast Asia, but also the West Coast of the United States," Santos chief executive John Ellice-Flint said at the event.

Santos said it had so far secured a site for the proposed plant, had completed pre-front end engineering and design studies, and the approvals process was now underway.

The company said the deepwater port would be accessible for large tankers and the area had a “significant local skilled workforce”.

A final investment decision is planned for late 2009, with first LNG expected in 2014.