FAQs

What is Santos GLNG?

Santos GLNG is a pioneering venture that will produce natural gas from Queensland’s coal seams and convert it into liquefied natural gas (LNG) for sale to world markets.

It involves ongoing gas field development in the Surat and Bowen Basins, a 420-kilometre gas transmission pipeline, and the construction of an LNG plant on Curtis Island, near Gladstone.

Santos GLNG is led by Australian company Santos, in partnership with three of the world’s leading energy companies – PETRONAS from Malaysia, Total from France, and KOGAS from South Korea.

Santos GLNG is on track for its first LNG cargo in the second half of 2015, and when fully operational will have the capacity to produce 7.8 million tonnes of LNG each year.

Santos GLNG is leading the way in making Australia a world-leading gas producer, and will be worth billions of dollars to the Queensland economy over many decades.

Who are the shareholders of the project?

Santos GLNG is a joint venture between Santos, PETRONAS, Total, and KOGAS.

Santos is one of Australia’s largest domestic gas producers, supplying gas to Australian and Asian markets.

PETRONAS is Malaysia's national oil and gas company and the world's second largest exporter of LNG.

Total is a leading French energy company, and the world's fifth largest publicly traded integrated international oil and gas company.

KOGAS is short for Korean Gas Corporation - the world's largest LNG importer.

The ownership structure of the project is: Santos 30%; PETRONAS 27.5%; Total 27.5%; and KOGAS 15%.

When do you expect first shipments to take place?

Santos GLNG is on track for its first LNG cargo in the second half of 2015, and when fully operational will have the capacity to produce 7.8 million tonnes of LNG each year.

How long has natural gas from coal seams been produced in Queensland?

The production of natural gas is not new. Santos has been producing natural gas from coal seams in Queensland safely and sustainably for 16 years. We have been producing oil and gas from sandstone formations in Queensland for more than 50 years.

What is coal seam gas?

Coal seam gas (CSG) is natural gas (predominantly methane) that is extracted from coal seams. Typically, CSG consists of 98 per cent methane with less than two per cent inert gas and no petroleum liquids. Methane is odourless and colourless. 

In eastern Australia, about one third of the natural gas currently being used comes from coal seams, while in Queensland this is much higher at over 90%.

CSG is simply methane natural gas extracted at low pressure from coal. Conventional natural gas is extracted from sandstone, generally at greater depths and higher pressure.

How is coal seam gas produced?

It is produced by drilling a well into a coal seam and releasing the gas by pumping out a minimal amount of water which in turn reduces the pressure in the coal seam allowing the gas to flow to the surface. 

Where are you extracting gas from for Santos GLNG?

Exploration and gas production activities are being undertaken in the Scotia, Roma and Fairview fields in Queensland. Exploration is also being undertaken in the Arcadia Valley.

Click to view our interactive map.

Is natural gas cleaner than coal?

Natural gas is a clean, reliable and affordable energy source. Gas has the lowest carbon intensity of the fossil fuel alternatives and is cleaner than coal by up to 70 per cent.  Gas is also a vital enabler of intermittent, renewable energy technologies such as wind and solar. As the energy mix between renewables and fossil fuels changes, natural gas can quickly and reliably maintain energy supply.

Quick facts

  • Every million tonnes of LNG that replaces coal is equivalent to emissions from up to 400,000 households
  • Every million tonnes of LNG that replaces coal is equivalent to taking up to 900,000 cars off the road
How many jobs is Santos GLNG creating in Queensland?

Santos GLNG is employing locals directly and indirectly. For regional towns like Roma, it’s meant that the unemployment rate has dropped to just 2.2%.

Santos GLNG has created more than 6,000 job opportunities, including 4,300 for Queenslanders.

Santos GLNG will create approximately 1000 long-term operational jobs.

In Gladstone, Santos GLNG has recruited the majority of its long-term operations workforce, with a significant proportion of these long-term jobs going to local people.

What have you contributed to regional Queensland communities so far?

We're committed to sharing the benefits of our natural gas business with the communities in which we operate. To date, we've invested $200 million in community infrastructure, initiatives and events, including roads, hospitals, school programs, weed management and affordable housing.

Examples of our community investments include:

- More than $8 million in the Maranoa for Roma Airport upgrade, improvements to community and allied health services, and housing support.
- $1 million for weed and pest management across regional Queensland.
- $500,000 towards the Roma community hub.
- $500,000 to boost volunteer firefighting equipment.
- Almost $11 million for Gladstone Airport and community housing support.
- $10.5 million for a Gladstone Hospital upgrade and midwifery program, and an industry-funded Aero Medical Evacuation and retrieval service in Gladstone.
- $3.5 million towards the Gladstone Foundation.
- $400,000 to upgrade the Gladstone Police-Citizens Youth Club.
- Ongoing support for schools, community groups, events, shows, galleries.
 
What economic benefits are you delivering to Queensland?

With a long history in Queensland, we’re proud of the economic benefits we’re already delivering and will continue to deliver.

Santos GLNG has provided $11.6 billion worth of work to Australian companies, including:

- $6.2 billion to Queensland businesses.
- More than $267 million to businesses in Central Queensland, including more than $260 million in Gladstone alone.
- More than $490 million to businesses in South West Queensland, including more than $155 million in the Maranoa region alone.

In addition, royalties from Santos GLNG's natural gas operations alone will contribute billions of dollars to the people of Queensland, which means more money for Queensland schools, hospitals and infrastructure.

Click to read more about how Santos GLNG is benefitting Queenslanders.

Santos Pipeline Map

Map

Santos has a 50 year track record of working with local landholders and contributing to communities as we've grown to become Australia's largest domestic gas producer.

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