ConocoPhillips, Santos LNG Projects Will Swap Gas to Lower Costs

From Bloomberg

By James Paton

ConocoPhillips (COP) and Santos Ltd. (STO), developing separate liquefied natural gas projects in Australia at a cost of more than $40 billion, agreed to share pipelines and exchange gas to reduce costs and duplication.

The projects in Queensland state will build two pipeline connection points and sign gas-swap agreements, according to a joint statement today from Adelaide-based Santos and ConocoPhillips’s partner, Sydney-based Origin Energy Ltd. (ORG)

ConocoPhillips and Origin are building a A$24.7 billion ($24 billion) project to liquefy natural gas for shipment to Asia, while Santos is developing an $18.5 billion development. Australia, forecast to become the world’s largest supplier of LNG with seven projects under construction, is facing rising costs that threaten expansions.

Click here to read more

Add Comment

By posting your comment, you agree to abide by our Posting rules

Text

© 2013 Energy Tribune

Scroll to top