The first ever coal-seam project for Gladstone may only be fictitious, but Santos claims it's already put in consolidation.

Santos believes the preparation for the Gladstone project has placed it in a favorable position with the projected industry's consolidation.

The report made earlier by the Australian this day, underlining negotiations with Shell and with others, aided the Santos price and upped it to $13.69, a 7.3 per cent increase, in this afternoon's trade.

Santos verified the existence of talks, but did not extrapolate. However, David Knox, Santos' big man, has announced he would be interested in talking to anyone who would offer equity in the Gladstone project to those interested in buying the gas.

Sinopec and Korean Gas are both negotiating with Santos about potential stakes on equity, and of course, clarity regarding the new tax regulations has made the process smoother for Knox to talk about deals.

The negotiations with Shell are more about collaboration, with some possible equities for a another gas train, rather than equity for the entire project; however it is too early to tell, says the Australian.

Official confirmation of any agreements is not expected to be forthcoming as well.

Santos has already gained the approval of the Queensland government regarding Gladstone's environmental checks, as with BG, who is also still vying for federal level approval.

Both Santos and BG are already ahead in the process compared to Origin, but Grant King, big boss of Origin, seems not to mind it much, indicating that it is just an issue of attracting customers when they are ready.

Four projects as of now are being planned, including the project of Arrow and Shell, but most foresee that only about two of them will push through.