Queensland encourages gas project merger
Queensland premier Anna Bligh has confirmed industry talk the state government has been encouraging proponents to combine projects.
Strongly supporting the alliance among Gladstone's multibillion dollar coal-seam gas-export sector, she said consolidation would increase the potential to bring some of the projects to results.
"These are big projects, requiring investment above four and five billion (dollars). So the more substantial the consortia bringing the project, the more likely it is that it will be realised and that is a good thing for jobs and investmen," Ms Bligh said.
As reported last week, the Royal Dutch/Shell and Santos were planning to merge two of the four largest planned CSG-to-LNG plants at Gladstone, and the energy companies have previously stated there was pressure coming from government to consolidate.
Still, whether the beginning of an alliance is beneficial for all the proponents is another thing.
Origin Energy's Australia Pacific Liquefied Natural Gas merger with ConocoPhillips seems likely to be suspended because of the announcement of Santos and Shell talks to combine their Gladstone LNG projects, according to UBS.
However, this, and news that APLNG could be rushed into a consolidation of its project with rival BG, have not shown in the company's share price which has climbed on both trading days since the Shell and Santos talks were disclosed.
Origin's shares ending 90c up at $15.64 yesterday.
After the Shell-Santos talks were revelaed Friday, they increased 42c.