Asian Giant Will Ignite Gas Project
The Age
Wednesday May 7, 2008
SHELL, Tokyo Electric Power (Tepco) and an unnamed Australian utility - presumed to be AGL - have been linked to the search by Santos for a "technical" partner for its proposed coal-seam liquefied natural gas project in Gladstone, Queensland.
Santos has made no secret of its search for technical partners for its $7.7 billion Gladstone LNG project. The project is a competitor to the Gladstone LNG ambitions of Britain's BG Group, which last week bid $12.9 billion for Origin, the number one holder of coal-seam gas reserves in Queensland. The entry of Asia's biggest utility, Tepco, and possibly AGL, gives the speculation an added piquancy. Tepco is a foundation customer of the Woodside-managed North West Shelf project, which is based on conventional gas resources.Shell is a 34% shareholder in Woodside and its potential entry into an LNG export business based on coal-seam gas resources - it would be a world first - would give the nascent industry a confidence boost to follow on from that provided by BG's entry.The reporter owns Santos shares
© 2008 The Age
