Santos in the Red on LNG Project
By Aiswarya Lakshmi
Friday, August 19, 2016
Australia’s third-biggest oil and gas producer Santos Ltd reported a first-half net loss of $1.1 billion after taking a $1.05 billion charge on its Gladstone liquefied natural gas (LNG) export project in Queensland, reports Bloomberg.
However, Santos Chief Executive Kevin Gallagher said the company may run its Gladstone liquefied natural gas plant (LNG) below its 7.8 million tonnes a year capacity, but said there was no plan to mothball one of its two production units, reports Reuters.
"We wouldn't be looking to ever mothball one train," Gallagher said: "But what I would say is that we will operate both trains potentially at reduced capacity to optimise the production across the facilities. And that'll change with time, from year to year, depending on market conditions, and depending on the annual delivery plan requirements."
The loss of the Adelaide-based company compared with net income of $30 million a year earlier. It recorded an underlying loss of $5 million, versus a profit of $25 million in the previous corresponding period.
Gallagher says he is confident the Adelaide energy giant is taking the right steps to become a “strong and sustainable” business.