Tuesday, January 18, 2011
Monday, January 17, 2011
Santos gas project sold out - Gladstone Economy News
A breakthrough $US60 billion deal with world’s largest buyer of liquefied natural gas will allow Santos to speed up a doubling of capacity at its landmark $US16 billion Gladstone LNG project in Queensland.
Santos on Friday confirmed its Gladstone joint venture had committed to sell 3.5 million tones a year for 20 years to Korea Gas, all but selling out projected production from the project’s first two trains, or processing lines.
Santos will, as part of the deal, sell Kogas and its existing Gladstone partner, Total of France, a 15 per cent equity stake in the project for $655 million.
The deal ensure Gladstone will be the second coal seam gas-fed LNG project to be approved for development, behind BG Group’s $US15 billion Queensland Curtis project approved in October.
Combined with an earlier agreement to sell 3.5 million tones a year of LNG to Malaysian giant Petronas, the project has now secured buyers for LNG worth about $US120 billion. Santos and its partners plan to approve the development, rather than a single-train project, with a final investment decision delayed by a month until the end of January.
The second train is set to improve Gladstone’s economics by leveraging off infrastructure built to support the first train.
Santos also announced it would shore up its finances for the project’s construction through a $500 million placement at $12.55 – a 1.2 per cent discount to its average share price the past week.
Santos chief executive David Knox said Gladstone was now “well and truly ready to go”.
“We’ve underpinned a two train project, that’s the absolute key thing we’ve done today,” Mr Knox said from Seoul on Friday.
“We’ve got a very strong set of partners, we’ve got 7 million tones of LNG sold, and we’ve moved the project towards ( a final investment decision) in January, which allows us to delivert his. That’s a whole new investment.”
Santos provided new detail about Gladstone’s projected capital costs, and the projects $US16 billion forecast budget will come in slightly below analysts’ expectations.
That figure includes $US2 billion in contingencies, with much of the project’s cost locked into fixed price contracts.
The company said it expected the overall rate of return from Gladstone to be between 11 and 14 per cent.
Macquarie research analyst Adrian Wood said Kogas would make a “fantastic” addition to Gladstone.
“Without Kogas they were looking to sanction one train now and one later.” Mr Wood said.
“That would have meant an awkward conversation with shareholders about raising money for a second train they hadn’t yet committed to, but would also have exposed what are some fairly marginal economics on the first train as a stand-alone project. Now with Kogas in we’re looking at a two-train project, and that maddively de-risks the whole thing,” He said.
Deutsche Bank advised Santos on the Kogas transaction, while JPMorgan and Morgan Stanley will carry out the placement.
On top of Santo’s equity stake sales, Petronas will sell another 7.5 per cent share of Gladstone to Kogas.
That will leave the joint venture consisting of Santos with 30 per cent, and Kogas 15 per cent.
The project’s nameplate capacity will also increase from 7.2 million tones a year to 7.8 million tones.
Santos shares were at $12.97 before they entered a trading halt on Friday.
Report by Paul Garvey
Santos on Friday confirmed its Gladstone joint venture had committed to sell 3.5 million tones a year for 20 years to Korea Gas, all but selling out projected production from the project’s first two trains, or processing lines.
Santos will, as part of the deal, sell Kogas and its existing Gladstone partner, Total of France, a 15 per cent equity stake in the project for $655 million.
The deal ensure Gladstone will be the second coal seam gas-fed LNG project to be approved for development, behind BG Group’s $US15 billion Queensland Curtis project approved in October.
Combined with an earlier agreement to sell 3.5 million tones a year of LNG to Malaysian giant Petronas, the project has now secured buyers for LNG worth about $US120 billion. Santos and its partners plan to approve the development, rather than a single-train project, with a final investment decision delayed by a month until the end of January.
The second train is set to improve Gladstone’s economics by leveraging off infrastructure built to support the first train.
Santos also announced it would shore up its finances for the project’s construction through a $500 million placement at $12.55 – a 1.2 per cent discount to its average share price the past week.
Santos chief executive David Knox said Gladstone was now “well and truly ready to go”.
“We’ve underpinned a two train project, that’s the absolute key thing we’ve done today,” Mr Knox said from Seoul on Friday.
“We’ve got a very strong set of partners, we’ve got 7 million tones of LNG sold, and we’ve moved the project towards ( a final investment decision) in January, which allows us to delivert his. That’s a whole new investment.”
Santos provided new detail about Gladstone’s projected capital costs, and the projects $US16 billion forecast budget will come in slightly below analysts’ expectations.
That figure includes $US2 billion in contingencies, with much of the project’s cost locked into fixed price contracts.
The company said it expected the overall rate of return from Gladstone to be between 11 and 14 per cent.
Macquarie research analyst Adrian Wood said Kogas would make a “fantastic” addition to Gladstone.
“Without Kogas they were looking to sanction one train now and one later.” Mr Wood said.
“That would have meant an awkward conversation with shareholders about raising money for a second train they hadn’t yet committed to, but would also have exposed what are some fairly marginal economics on the first train as a stand-alone project. Now with Kogas in we’re looking at a two-train project, and that maddively de-risks the whole thing,” He said.
Deutsche Bank advised Santos on the Kogas transaction, while JPMorgan and Morgan Stanley will carry out the placement.
On top of Santo’s equity stake sales, Petronas will sell another 7.5 per cent share of Gladstone to Kogas.
That will leave the joint venture consisting of Santos with 30 per cent, and Kogas 15 per cent.
The project’s nameplate capacity will also increase from 7.2 million tones a year to 7.8 million tones.
Santos shares were at $12.97 before they entered a trading halt on Friday.
Report by Paul Garvey
Sunday, December 19, 2010
Kasey Chambers Set to Rock Gladstone
Kasey Chambers has just completed the first leg of her national 'Little Bird' tour and is will recharge her batteries over the festive season then head to Western Australia before taking her sell out tour to North Queensland.
"Our North Queensland fans have been very patient" Kasey's publicist says. "...and we know you are going to be mighty pleased to know that Kasey is bringing her 'Little Bird' tour your way after her Tamworth shows in 2011."
Chambers will perform to a packed houses at Gladstone Entertainment Centre on Wednesday 2nd and Thursday 3rd March 2011.
View Metro Hotel and Apartments Gladstone
Tuesday, October 19, 2010
Monday, October 18, 2010
Wednesday, September 22, 2010
Sustainable tourism program to create 'guilt free' holidays on the Capricorn Coast
Capricorn Coast tourism operators have been invited to "go green" after Tourism Queensland officially launched its landmark Sustainable Regions Project in the region last week. An Australian first that has already run successfully in six other Queensland regions, the Sustainable Regions Project is aimed at reducing the environmental impact of tourism to encourage visitors to view the Capricorn Coast, and eventually Queensland, as a sustainable tourism destination. Tourism Queensland has received great support for this project from the local industry and stakeholders, including Capricorn Tourism and Economic Development Limited and Rockhampton Regional Council. (Source: Tourism on Q, 22nd September 2010)
For Ideal Gladstone Hotel and Apartment Accommodation, Metro Hotel and Apartments Gladstone is the ideal choice.
Thursday, August 5, 2010
The Hoodoogurus are Coming to Gladstone! Gladstone Music Events!
The Hoodoogurus are Coming to Gladstone on the 28th August 2010,
The mighty Hoodoo Gurus released their ninth studio album Purity Of Essence in April 2010 and to mark this auspicious occasion they have been doing what they do best: hitting the road and performing like they have done for many a decade...
The mighty Hoodoo Gurus released their ninth studio album Purity Of Essence in April 2010 and to mark this auspicious occasion they have been doing what they do best: hitting the road and performing like they have done for many a decade, exciting fans across the globe with a live show to rock you to your core and leave you aching for more!
The Gurus kicked off the 'Purity of Essence' National Tour in WA in April this year and played to massive sold out shows around the country in all capital cities throughout April and May. After the success of a sold out tour, they have decided to head back out on the road for July, August and September to hit regional cities in Tassie, Victoria, QLD, NSW, WA and NT!
The Gurus exist in their own time and space. They have been a part of the Australian music psyche since they brought us classic songs like 'Tojo', 'My Girl' and 'I Want You Back' from the Stoneage Romeos-era and from Mars Needs Guitars' 'Bittersweet', 'Death Defying' or 'Like Wow - Wipeout!'. Throw in '1000 Miles Away', 'Waking Up Tired' and 'The Right Time', and more than 100 other songs they have written, recorded and played that have meant something to someone some time and there is no denying that on record or live, they ARE Oz rock royalty.
Dave Faulkner and his band mates, guitarist Brad Shepherd, bassist Rick Grossman and drummer Mark Kingsmill, have been going strong, again, since reuniting in late-2003 after almost six years apart.
The Gurus new album is by all accounts, one of the best to date and on the July/August tour they will be showcasing the new tracks from the album and of course, playing the Hoodoo Gurus classics we all know and love, which makes for one hell of a cracking live show!
AUGUST 28th, REEF HOTEL - GLADSTONE, QLD
Ph: 07 4972 1000
Tristan.powell@nlgops.com
Need accommodation in Gladstone for the Hoodoogurus? Metro Hotel and Apartments Gladstone
View the Hoodoogurus Website
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