Santos signs LNG supply to Petronas

Just when Pertamina and Medco are struggling to proceed with Donggi-Senoro LNG project, Santos and Petronas, partners in a multi billion dollar LNG project in Queensland, signed a binding heads of agreement to sell 2 million tons per annum of LNG to Petronas with an option for an additional 1 million tons. The agreement is conditional only upon the GLNG project reaching a final investment decision. 

Santos told Australia Stock Exchange (ASX) this morning that the agreement covers the sale and delivery of LNG to Petronas for a period of 20 years beginning in 2014. The LNG will be utilized in the Malaysian domestic gas market. 

GLNG is the world's first major coal seam gas (CSG) to LNG operation. Petronas acquired 40% interest in GLNG last year, while Santos keeps the balance of 60%. 

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