Total to tap Petronas’ expertise in marketing LNG in Asia
Petronas has entered into an agreement to sell a 5% stake in the Gladstone Liquefied Natural Gas (GLNG) project in Australia to Total, the Australian Associated Press (AAP) reported.
Total is the world’s fourth largest listed natural gas producer. At the same time, Santos Ltd, Australia’s third-largest oil and gas producer, stated it would sell 15% stake in the GLNG project to Total for A$650mil.
Upon completion of the transactions, Santos will retain a 45% ownership, Petronas 35% and Total 20%. Santos said the GLNG transaction was the first major investment by Total in an LNG project using unconventional gas anywhere in the world.
Chief executive David Knox said the deal with Total was a landmark agreement for the Australian LNG industry. “We are pleased to welcome Total into the GLNG project as a fully integrated joint venture partner,” Knox said in a statement yesterday.
“Total brings substantial technical LNG plant and project management expertise with respect to major LNG developments,” he said.
Total chairman Christophe de Margerie said the company was teaming up with Santos for its expertise in gas production in Australia, and with Petronas for its experience in marketing LNG in Asia.
“Total will bring to the project its experience in successfully managing major projects such as the construction of gas liquefaction plants, and its capacity to market LNG to the Asian market,” he was quoted by AAP as saying.
Santos said GLNG had also signed an agreement for the sale of 1.5 million tonnes per annum (mtpa) of LNG to Total for a period of 20 years starting in 2014. In addition, GLNG and Petronas have increased contracted volumes to 3.5 mtpa under their previously announced agreement.
The combined agreements provide for the sale of five mtpa of LNG for more than US$100bil, underpinning the development of a two-train project, Santos said.
Santos also said it would explore further potential cooperation with Total in respect to commercialising its significant contingent resources in Australia.
Proceeds from the asset sale transaction would be used to fund Santos’ significant pipeline of growth projects and general corporate purposes, including funding the company’s 45% share of GLNG project costs.
The sale agreement is subject to Australian Foreign Investment Review Board approval and other customary consents and regulatory approvals. — Bernama
