GHD is undertaking FEED for the pipeline, which is set to run from Santos' Fairview and Roma coal seam gas (CSG) fields to the Port of Gladstone where the GLNG Project will be located.

The GLNG Project involves the production of LNG using CSG from Santos’ fields in the Bowen and Surat basins. First LNG cargos are expected in 2014.

In addition, Santos has said that the 6.6 million tonnes per annum (MMt/a) capacity of the PNG LNG Project has been fully contracted.

The PNG LNG partners have signed binding LNG sale and purchase agreements (SPAs) with Tokyo Gas, Sinopec and Osaka Gas for a total of approximately 5.3 MMt/a. The joint venture partners are also working with Chennai Petroleum Corporation to finalise an SPA for approximately 1.2 MMt/a.

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Other PNG LNG joint venture partners include ExxonMobil as operator, Oil Search and Nippon Oil.

The project has the potential to become the largest project ever undertaken in PNG, envisaging an integrated development of the Hides, Angore and Juha gas fields as well as associated gas from the Kutubu, Agogo, Gobe and Moran oil fields. The first LNG cargo is expected to be shipped in early 2014.