News

Concerns made over lack of gas for GLNG site

UPDATE 5pm:

A SANTOS spokesperson has said the company is looking forward to being in Gladstone "for decades to come" and poured water over suggestions the company wouldn't have enough gas to supply the GLNG plant. 

The spokesperson said GLNG was in a strong position compared to its supply agreements with other gas companies.

"We have 20 years to deliver these volumes," the spokesperson said. 

"Our portfolio totals 8000 petajoules of gas reserves including from our own gas fields and third party sources. If you include contingent resources the portfolio totals 9000 petajoules.

"We look forward to operating safely and reliably in Gladstone for many decades to come."

EARLIER 11.10am:

SANTOS has fixed its balance sheet with a $3 billion bottom-of-cycle equity raising after a three-month strategic review, but now faces analyst concerns about its ability to supply enough gas to the $US18.5bn ($26.2bn) Gladstone LNG project.
 
The Australian reported that Credit Suisse and CLSA, two of the few major banks not involved in the equity raising (UBS, Deutsche Bank, Citi and Goldman Sachs are all conflicted) put post-raising target prices of $5 and $5.50 on the Adelaide company, not far off the theoretical ex-rights price of $5.15.

Analysts at both banks said they were worried about Santos's ability to access enough gas to fill the two trains it is building at Gladstone.

 

 

But there have been few investor or analyst gripes about the sale of a 7.9 per cent stake to Chinese private equity player Hony Capital, or suggestions it will dissuade Brunei-backed Scepter Partners coming back with a higher bid.

Santos on Monday announced a $2.5bn renounceable rights issue at $3.85 a share (a 35 per cent discount to its last closing price of $5.91), a $500 million placement to Hony and a $520m sale of its stake in the Kipper offshore gasfield in Victoria.

 

 

It comes after Santos announced that the GLNG site was one asset that it would consider to sell, as the company worked to reduce debt.

The first shipment of gas from the GLNG site was made on September 24. 

Topics:  bechtel, curtis island, gladstone industry, glng, lng




UPDATE: Family Pit Bull mysteriously reappears after reported stolen

Kirrily Southall's pet dog stolen from her between hours of Friday night and early Saturday morning. Inset, one of the bones found in her Calliope backyard.

SHE didn't give her dogs bones, so who did? And where is Loki?

Gladstone ice user busted twice driving when court disqualified

A GLADSTONE court was told that a young woman’s drug of choice was ice but she was now actively trying to do something about her addiction.

Ice is no drug of choice, it's dangerous, woman told by court.

UPDATE: 25-year-old man dies in Benaraby collision, video:

Fatal motorbike accident at Benaraby.Photo Mike Richards / The Observer

Its been confirmed the man who died at the scene of the crash was 25

Latest deals and offers

Superheroes of the big screen enjoy sounds of Splendour

CHRIS Hemsworth and his Avengers mates drop by Byron festival.

Indigenous artist shows tourists secrets of Aboriginal painting

Ever thought "I could do that" about Aboriginal art?

Dynamic pics from Splendour Day 1

The Strokes perform at Splendour in the Grass 2016. Photo Marc Stapelberg / The Northern Star

Check out the latest pictures from Splendour in the Grass.

Bindi Irwin: 18 magic photos to mark her 18th birthday

Bindi Irwin with a python.

Photos: Bindi Irwin from babyhood to 18

Aussie director makes his mark on new Roots mini-series

Malachi Kirby as Kunta Kinte in a scene from the TV series Roots.

BRUCE Beresford behind final episode of remake of iconic series.

Wham bam, thank you TAM

Regional TAM is increasing its audience measurement services by 50%.

Regional television viewers finally getting the credit we deserve

You can own this Queensland town for just $1

Yelarbon

Unprecedented auction of town's business centre with no reserve

Work starts on $15M Caloundra apartment building

Turning the first sod at the Aqua View Apartments site in Kings Beach are (from left) husband-and-wife developers Alex Yuan and Stella Sun with construction company Tomkins director Mike Tomkins and Councillor Tim Dwyer.

Developers excited about addition to Kings Beach skyline

72-year-old Coast developer set to start new project

GREEN LIGHT: The Cosmopolitan has been approved for development at Cotton Tree.

Meet the Canberran set to deliver another chapter for Coast suburb

Plans revealed for 1500-lot 'master-planned community'

Precinct will be bounded by Boundary St and Shoesmith Rd

Ecco Ripley sales run sparks prime release

MOVING IN: Sekisui House has announced the release of more residential blocks at Ecco Ripley.

Sekisui House is preparing to unveil more land at Ecco Ripley

The climb is slow but property on the way up

Michael Matusik, director of Matusik Property Insights.Photo Allan Reinikka / The Morning Bulletin

The improvement would be mild when compared to past cycles