Santos secures A$2-bn bank loan to fund LNG projects
20 Jul 2010
Australian oil and gas major Santos Limited, the developer of prestigious liquefied natural gas (LNG) projects, yesterday announced that the company has arranged a A$2 billion ($1.74 billion) bank loan facility to fund its growth plans.
The loan will be used to refinance the company's existing A$700 million of undrawn bilateral bank facilities that mature between 2011 and 2013, and to increase liquidity.
It will provide flexibility to fund Santos' growth including the Gladstone LNG project in Queensland, said the company's executive vice president and chief financial officer Peter Wasow in a statement.
An Australian energy pioneer since 1954, Santos is one of the country's leading gas producers, supplying about 18 per cent of the nation's gas needs and also to Asian customers.
In May, the Gladstone LNG project, a 60:40 joint venture between Santos and Malaysia's national oil and gas company Petronas, won environmental approval from Queensland authorities and became the first major Australian coal seam gas to LNG project to get the clearance. (See: Santos project wins environmental approval from Queensland government)
Another major LNG project in Papua New Guinea (PNG), in which Santos has 13.5-per cent interest, is also going ahead with its implementation under the leadership of global oil giant Exxon Mobil.
