Santos approves US$16 billion Gladstone LNG project, helps Queensland recover from floods

The announcement made today by Santos Ltd. on the approval of the US$16 billion Gladstone Liquefied Natural Gas Project (GLNG) in Queensland, Australia will lead to the creation of 6,000 jobs in the short to medium term as seen by politicians.

Santos’ move gives the green light for major project activities to begin. These include developments in upstream, pipeline, and Gladstone LNG plant facilities that would entail the creation of 5000 construction jobs and 1000 permanent production jobs in the first half of 2011.

Queensland Premier Anna Bligh acknowledged the major contribution of the project to Queensland with the GLNG promise of billions of dollars in investment, considerable number of job creation and the attainment of status of becoming a major LNG producer.

Bligh said, “Proceeding now with projects like this will be a tremendous boost to the Queensland economy as we recover from the devastating impact of the floods.”

Already holding the record of being Australia’s number one gas producer, Santos’ 30% share in the GLNG project now sets the company on the path to becoming one of the major LNG exporters in Asia.

As Santos Chief Executive David Knox pointed out, “The commitment we are making today delivers on the strategic vision to transform Santos into a significant exporter of LNG”

Petroliam Nasional Berhad (PETRONAS) of Malaysia and Total SA (Total) of France both hold 27.5% share while Korea Gas Corporation (KOGAS) takes the remaining 15%.