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Santos cuts Australian GLNG guidance, ups group output

  • Märkte: Natural gas
  • 23.07.20

Australian independent Santos has cut the calendar 2020 production guidance for its 30pc-owned 7.8mn t/yr Gladstone LNG (GLNG) plant in Queensland because of lower demand but has raised group output guidance following the completion of its purchase of ConocoPhilips' northern Australia assets.

Santos now expects GLNG's LNG sales to reach 5.9mn-6.1mn t this year as a result of lower customer demand during the Covid-19 pandemic, down from previous guidance of 6.2mn t but up from the 5.16mn t produced in 2019.

Santos' share of production from the GLNG venture in Queensland was 425,500t in the April-June quarter, down from 377,500t during the same period a year earlier and from 481,000t in the January-March quarter. Total GLNG output reached 1.37mn t in the latest quarter, up from 1.27mn t during the same period a year earlier but down from 1.58mn t in January-March, Santos said. Total GLNG output rose to 2.94mn t in the first half of calendar 2020 from 2.58mn t during the same period a year earlier, it said.

Despite the lower-than-expected output from GLNG, Santos raised its group production guidance to 83mn-88mn bl of oil equivalent (boe) or 226,800-240,400 boe/d in 2020 from previous guidance of 221,300-243,000 boe/d. This is the second time in three months that Santos has adjusted its guidance after changing it in April from 79mn-87mn boe previously.

The acquisition of the ConocoPhillips assets increased Santos' interest in the 3.7mn t/yr Darwin LNG venture in the Northern Territory and the Bayu Undan gas field in the Timor Sea, which provides feedstock for the Darwin LNG plant.

The ConocoPhilips transaction helped boost Santos' production in April-June. Santos reported a 10.7pc increase in production to 20.6mn boe in the latest quarter, up from 18.6mn boe during the same period a year earlier and from 17.9mn boe in January-March.

Santos' share of Darwin LNG output rose to 229,700t in the latest quarter from 53,100t during the same period a year earlier and 82,900t in the January-March quarter, it said.

But production on a 100pc basis was lower in the latest quarter at the Darwin plant from comparative periods. Total Darwin LNG production fell to 536,000t in the latest quarter from 620,000t during the same period a year earlier and from 856,000t in January-March, Santos said.

Santos has an interest in a third LNG plant, the ExxonMobil-operated 6.9mn t/yr PNG LNG venture in Papua New Guinea (PNG), where its share of output dropped to 265,200t in the latest quarter from 284,000t during the same quarter a year earlier and from 287,800t in January-March, it said.

Santos' share of production ('000t)
April-June '20Jan-March '20April-June '19Jan-Jun '20Jan-Jun '19
GLNG 425.5481.0377.5906.5788.5
Darwin LNG 229.782.953.1312.6144.4
PNG LNG265.2287.8284.0553.0549.7
Total LNG920.4851.7714.61,772.11,482.6
Group output (mn boe)20.617.918.638.537.0
Sales volume (mn boe)24.622.322.446.945.2
Sales revenue ($mn)785.0883.0959.01,668.01,974.0
Average realised oil price ($/bl)30.863.875.347.872.1

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