THE Santos Gladstone liquefied natural gas (GLNG) project is a go for gas.
Santos announced its Final Investment Decision for its $16 billion multi-national investment to no fanfare due to the floods yesterday becoming the second coal seam gas (CSG) to liquefied natural gas (LNG) proponent after British Gas (BG) to take the plunge into Queensland’s newly emerging gas market.
The entire GLNG project from the Bowen and Surat Basins to Gladstone has an estimated cost of more than US$16 billion from FID until the end of 2015, when the second train is expected to be ready for start-up.
Santos chief executive David Knox acknowledged approval of the project came at a difficult time for Queensland, which is confronting the human and economic cost of severe flooding across many communities.
“The commitment we are making today delivers on the strategic vision to transform Santos into a significant exporter of LNG,” Mr Knox said.
Mr Knox repeated Santos’ commitment to maintain the highest environmental and safety standards in developing the GLNG project, and to continue close engagement with local communities during the construction and operation of the venture.
Santos says the GLNG project is expected to create 5000 jobs during construction and sustain more than 1000 jobs during operation. It is expected that 1500 jobs will be created in the first half of this year.
Gladstone Regional Council Mayor Gail Sellers said this was good for the Gladstone region.
“This will mean jobs for the community and it will mean training for our disadvantaged and unemployed and will create apprenticeships and traineeships for our young people,” Cr Sellers said.
“This is the second announcement for LNG in Gladstone so I believe that the priority now is for all levels of government and the proponents to work together to address the impacts of these projects particularly in terms of health, housing and infrastructure needs of our community and I give assurance that the Gladstone Regional Council is fully committed to the enormous challenge.”
The GLNG project involves exploration and production of coal seam gas in the Surat and Bowen Basins, a 435km gas pipeline from the gas fields to Gladstone, and a gas liquefaction and export facility on Curtis Island.
Queensland Premier Anna Bligh said the GLNG project would cement Queensland’s role as a significant producer of LNG, promised billions of dollars of investment in regional communities and would see the creation of 6000 jobs.
“Proceeding now with projects like this will be a tremendous boost to the Queensland economy as we recover from the devastating impact of the floods,” she said.
“This project worth about $120 billion in exports over 20 years,” Ms Bligh said.
“The millions of dollars in state royalties this project will generate will help bolster the state’s economic recovery after the devastating floods.
“At times like this we need to be able to look to the future with hope and optimism and the LNG industry will play an important part in our state’s recovery from this flood crisis.”
This project worth about $120 billion in exports over 20 years
Premier Anna Bligh
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