Oil and gas producer Santos Ltd says coal seam gas producer GLNG has extended a timeframe to supply extra liquefied natural gas to Malaysia’s Petronas.
Santos has a 60 percent interest in the multi billion-dollar Gladstone LNG project. Petronas owns the other 40%.
GLNG announced on June 18, 2009 that it had entered a heads of agreement to sell two million tonnes per annum (mtpa) of liquefied natural gas to Petronas, with an option for an extra one mtpa on the same terms should GLNG elect to supply.
The agreement with Petronas underpins the volumes for the first train of the GLNG project.
“GLNG remains in detailed ongoing discussions with a number of Asian LNG buyers in relation to potential sales from the GLNG project,” Santos said today.
“These discussions include the potential for buyers to purchase an equity stake in GLNG from Santos.
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“GLNG anticipates making further announcements on marketing prior to the final investment decision which is due mid-2010.”
Santos said that as a result of the ongoing talks with potential buyers, GLNG had advised that the timeframe for GLNG to exercise the option to supply Petronas with the extra one mtpa had been extended to the final investment decision on the first train.