this is big, big news.
BHP would be proud to have this sort of project.
Expect QGC to at leat double witinhin the next 12 months.
"The deal will increase Queensland Gas's valuation and the shares should benefit, JPMorgan's Greenwood said. For Santos, who has no partner for its proposed LNG project in Queensland, there are advantages and disadvantages, he said.
``I think Santos would have liked to partner with BG, and this could still be the case with a second train, but Santos may not get the terms it was after,'' Greenwood said. ``On the positive side, the momentum behind East Coast LNG is now undeniable, and domestic gas prices will probably rise.''
Santos's plans for its project remain unchanged, said Matthew Doman, a spokesman at Adelaide-based Santos, Australia's third-biggest oil and gas producer. ``This proposal confirms others share our enthusiasm for Queensland coal seam gas to supply the global LNG market,'' he said. Santos last year had a bid to buy Queensland Gas blocked by a regulator. Queensland Gas subsequently formed an alliance with AGL Energy Ltd., which bought a 27.5 percent stake to become its biggest shareholder.
Doubling Prices
LNG from the project will fetch twice as much as gas sold into the Queensland market so the transaction doubles the value of Queensland Gas reserves, Cottee said. The partners expect to approve the project by the second quarter of 2010, he said."
QGC
queensland gas company limited
