GLNG short of gas: Total

AN UPSTREAM executive from French supermajor Total SA has confirmed that the Santos-operated Gladstone LNG project needs more gas resources.
GLNG short of gas: Total GLNG short of gas: Total GLNG short of gas: Total GLNG short of gas: Total GLNG short of gas: Total

Total upstream oil and gas head Yves-Louis Darricarrere discussed the gas supply challenges when he was in Sydney last week.

"We need and we are ready to buy (more gas) but there is a price limit and it is not really economical (at the moment)," he told The Australian.

He reportedly said the joint venture was looking at acquiring more Queensland exploration acreage as an alternative to buying third party gas.

"We have bought some (third party) gas and we have the opportunity to buy (more) at an economical price," he reportedly said.

"At the same time we are looking, to see if we can develop or get some acreage that would be prospective for gas in Queensland."

Santos remains convinced there is enough gas to fuel the two LNG trains of project.

"GLNG has reserves and resources in place suitable for the supply needs of the project," a spokesman reportedly said.

Royal Dutch Shell CEO Ben van Beurden told the newspaper last week that Arrow Energy (50:50 Shell and PetroChina), which shelved its LNG project earlier this year, was still in talks with the other three Curtis Island-based LNG projects that are all under construction.

The $US18.5 billion ($A19.7 billion) GLNG project is targeting 7.8 million tonnes per annum of LNG with first exports in 2015.

The GLNG JV consists of Santos (30%), Petronas (27.5%), Total (27.5%) and Kogas (15%).