Santos to sell Gladstone LNG stake to fund growth projects
11 Jan 2010
Australian oil and gas major Santos Ltd. said on Sunday that it is in talks with several Asian buyers to sell an equity stake in its Gladstone liquefied natural gas (GLNG) export project, located near a port in the northeastern state of Queensland.
"GLNG remains in detailed ongoing discussions with a number of Asian LNG buyers in relation to potential sales from the GLNG project," Santos said in a statement on Monday.
"GLNG anticipates making further announcements on marketing prior to the final investment decision which is due mid-2010," it added.
According to analysts, the stake sale will relieve Santos from its tight liquidity position, and help the company finance the requirements at Gladstone and the Papua New Guinea LNG without tapping the equity markets.
There were earlier reports that Korea Gas, the world's biggest LNG buyer is set to buy $10 billion worth LNG from Santos and may take up to 10 per cent in the GLNG project (See: Korea Gas to buy $10 billion worth LNG from Santos).
Petronas, Malaysia's national oil company and third largest LNG producer in the world, holds 40 per cent stake in GLNG.
