Santos LNG sales rise in 2016

The GLNG project (Image courtesy of Santos)

Australian LNG operator and stakeholder, Santos, posted record LNG sales numbers for the full-year of 2016.

Santos operates the Gladstone LNG project and holds stakes in the Darwin LNG project, and PNG LNG in Papua New Guinea.

Santos said in its 2016 report on Friday its LNG sales volumes rose 89 percent year-on-year to 2.8 million tonnes due to the ramp up of GLNG and “strong performance” at PNG LNG and Darwin LNG.

LNG sales revenue was US$887 million for the whole year of 2016, as compared to $696 million in the year before.

Fourth-quarter LNG sales increased by 57% to 741,900 tonnes.

The GLNG project on Curtis Island near Gladstone produced 4.6 million tonnes of LNG in 2016 and shipped 75 cargoes. Santos noted in the report it had completed a planned 3-week statutory inspection shutdown of LNG train 1 at the GLNG plant during the fourth quarter.

The company logged record annual sales volumes of 84.1 million barrels of oil equivalent (mmboe) in 2016, up 31% and above the upper end of guidance. Production rose 7 percent to 61.6 mmboe.

Kevin Gallagher, who started as new managing director and CEO of Santos in February, said 2016 was a year of significant change for the company.

“We restructured the business, removed substantial costs and generated free cash flow for the first time in many years. Our production cost per barrel has reduced, and we are free cash flow positive below $38 per barrel, down from $47 per barrel at the start of 2016,” Gallagher said.

“We enter 2017 with a clear strategy and a solid platform off which we can build and grow. Our business turnaround will continue as we reshape and focus our organisation to support five core, long-life natural gas assets: Cooper Basin, GLNG, PNG, Northern Australia and WA Gas. This singular focus will allow Santos to become a leaner, lower cost and high performing business with significant upside opportunities across our portfolio.”

LNG World News Staff

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