The Australian state of Queensland moved just a bit closer to its first export of LNG in 2015 with the introduction of natural gas into Santos GLNG’s pipeline connecting a natural gas field to a liquefaction plant.
Cheniere Energy Inc.’s Sabine Pass terminal is also on schedule to begin delivering LNG to the global market in 2015. The combination of facilities coming online to increase supply on world markets, and what some analysts, such as Goldman Sachs, perceive as a lower-than-expected demand growth in Asia could result in deferrals or cancellations of some LNG projects.
The 261-mile Santos Pipeline stretches from southwest Queensland to a facility on Curtis Island, off Gladstone Harbor, where the gas will be chilled to -270 F, its liquid state, before shipping to customers. Construction includes a 2.7-mile undersea tunnel from the mainland to Curtis Island. More than 50 subcontractors and more than 2,000 jobs have been created by the $18.5 billion project. Partners include Petronas, Total and Kogas.
“Commissioning of our pipeline is an important milestone, not only for our business, but also the Queensland LNG industry as a whole,” said Rod Duke, Santos vice president for downstream LNG, in a statement.
The Adelaide-based company began construction of the 1.05-meter-diameter pipeline in 2012 and has welded more than 36,000 segments to date.
“We’ve also individually negotiated land access agreements with more than 120 landholders,” Duke said, “and we’re proud of the strong relationships we’ve built with property owners and local communities over this time.”
Duke added that progress made in Santos GLNG’s gas fields in the Bowen and Surat basins, along with construction of the LNG plant on Curtis Island, pointed strongly toward first LNG exports next year.
The pipeline, built by Saipem Australia, will be progressively filled with gas by section, with first gas into the Curtis Island plant scheduled for later this year.
Joseph Markman can be reached at jmarkman@hartenergy.com.
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