Santos short of gas on GLNG project, Shell unwilling to sell

SANTOS is screaming for gas while Shell isn't willing to sell.

According to an investor note put out by Credit Suisse, the Santos-led GLNG project on Curtis Island is short of gas, with just how much they'll need from other sources a great unknown.

It said uncertainty around how many coal seam gas wells Santos would have to drill and the effectiveness of those wells was feeding the speculation Santos would need more third-party gas than forecast.

The analysts suggested it would have to source 35% of its gas over the life of the project from third parties.

The firm has previously suggested there could be pain to come on project costs, as it said it appeared the project has already blown through its $20.8 billion budget with construction of the project not yet finished.

The analysts said assuming currency doesn't fluctuate too much, the final dollar figure on the project could be about $22.7 billion.

Meanwhile it appears the Shell/PetroChina joint venture which is heading up the Arrow LNG project is content to sit on its gas while it works out whether to go with the stand-alone LNG development or roll its gas into one of the existing projects.

Reports suggest the joint venture is "warehousing" its gas supply to either feed its Curtis Island project or roll it into one of the others.

Claims are the joint venture had been approached by two major domestic buyers, only to knock them back.

A lack of availability has been somewhat of a sore point for domestic buyers such as manufacturers, with a whole heap of gas set for export at higher prices; meaning there's less domestic supply, and only available at a higher price.



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premium_icon UPDATE: Fire crews monitor fire near aged care facility

Multiple crews attended the fire which broke out earlier today.

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He was transported to hospital overnight.

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Paramedics were called to the scene earlier this morning.