The Government welcomes the binding heads of agreement executed today between Santos Limited and KOGAS to supply 3.5 mtpa of liquefied natural gas (LNG) per annum from the proposed Gladstone LNG project.
Minister for Resources and Energy, Martin Ferguson AM MP, said the agreements signed today represent a further step toward a potential final investment decision for the project.
“Today’s binding agreement brings this project one step closer to potentially being the second major LNG export project to go ahead in Gladstone, subject to a final investment decision by the project partners,” Minister Ferguson said.
“It is also a significant trade deal with Korea, an important trading partner for Australia.
“The export of LNG is a growing industry in Australia with the potential to create jobs and deliver long-term economic benefits.”
KOGAS has also announced it will take an equity interest in the project, subject to regulatory approval.
Federal environmental approval for the project was granted by Environment Minister Tony Burke on 22 October 2010.