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Australia's AGL to sell gas to Santos-led Gladstone LNG project

Published 24/12/2015, 09:45 am
© Reuters.  Australia's AGL to sell gas to Santos-led Gladstone LNG project
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SYDNEY, Dec 24 (Reuters) - Australia's AGL Energy AGL.AX has agreed to sell 254 petajoules of gas to Santos Ltd STO.AX and its partners for the $18.5 billion Gladstone liquified natural gas project (GLNG), AGL said on Thursday.

The Santos-led project is the second of seven new Australian developments putting the country on track to overtake Qatar as the world's top LNG exporter in the next three years. urn:newsml:reuters.com:*:nL3N12F6KT

The gas, sourced from coal seam gas fields in Queensland, will be supplied over a period of 11 years, beginning January 2017 with pricing based on an oil-linked formula, AGL said in a statement.

This is AGL's third sale of gas from its wholesale gas portfolio and the first long-term sale to the GLNG project.

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