LNG

Papua LNG, the joint venture expansion project in Papua New Guinea involving France’s TotalEnergies, US major ExxonMobil and Australia’s Santos, has launched a full front-end engineering and design (FEED) process to expand the existing PNG LNG plant’s production by up to 6 million tonnes per annum.

Oct 20 (LNGJ) - Australian LNG operator Santos said it delivered record year-to-date sales revenue of US$5.9 billion, up 86 percent, and record free cash flow of US$2.7Bln, up 194 percent. The Adelaide-based company with LNG assets in Australia and Papua New Guinea said free cash flow of over US$1Bln in the third quarter reduced debt relative to equity to 20.8 percent at the end of September.

   “Santos delivered another strong quarter with record sales revenue and free cash flow, demonstrating solid performance from our LNG portfolio and our domestic gas business,” said Chief Executive Kevin Gallagher. “Santos is committed to keeping the Australian domestic market supplied, while remaining a leading, reliable and low-cost LNG supplier into Asia,” stated the CEO.

Australia LNG operator Santos with stakes in three Asia-Pacific liquefaction and export plants has issued a statement about speculation on the sale of shares in the company by ENN Group of China that had previously held a strategic stake and board representation.

Australian LNG producer Santos said a final agreement had been signed to give a framework for the Papua New Guinea LNG expansion project that would more than double output.

Oil Search, the Australian-listed company with liquefied natural gas interests in Papua New Guinea, has revealed it rejected an unsolicited takeover proposal from Santos of Australia, operator of the Gladstone plant in Queensland and Darwin LNG.

Australian LNG plant operator Santos expects to recognise a non-cash impairment charge in the range of US$700-US$800 million before tax, most of it attached to LNG, due to the revised oil price and the effects of Covid-19 and energy market demand fundamentals.