another article, page-2

Looks like the word is getting out in the press. Attached r a few links to this latest development in the CSG sector.

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Article extracted frm the Business Spectator

BREAKFAST DEALS: Shelling out for Santos, 9/7/10

Australias coal seam gas sector is gearing up for some consolidation, with reports that Santos is on the cusp of signing a multi-billion dollar deal for a strategic stake in its Gladstone Liquefied Natural Gas project (GLNG). According to The Australian, Santos and Royal Dutch Shell are in talks, which may see the global energy major take a stake of between 9 per cent and 20 per cent in the project. Meanwhile, the AFR suggests that the stake could be as big as 35 per cent. While the talks are still in a preliminary stage, a deal could see merger of GLNG and the Arrow Energys CSG -to-LNG project, which Shell acquired in March for $3.5 billion through a joint venture with PetroChina. Santos has been keen to sell a stake for some time to avoid tapping the market for extra funds, and Chinas Sinopec and Korea Gas have also been touted as possible buyers. However, the AFR reports that with Santos and Shell close to a deal Sinopec and Korea Gas will agree to long-term LNG purchase contracts.

* Santos has since told the market that it remains in talks with a number of parties in relation to potential LNG sales, equity in the project and collaboration between projects. The company said discussions were still incomplete with no definite agreements struck for the moment.
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Extract from Brisbane Times

Santos was responding to a report in The Australian Financial Review that it was close to inking a $2 billion deal with Shell to sell a 30-35 per cent stake in the Gladstone coal-seam gas-to-LNG project.

Citing industry sources, the paper said Santos was also close to signing long-term LNG sale agreements with China's Sinopec Corp and state-run Korea Gas Corp (KOGAS) that are worth tens of billions of dollars.

"Shell has indicated that they are open to consolidation and it is only logical for them to talk to Santos since Shell's acreage is land-locked and is located right next to Santos' project, which has a deep-water port good for LNG ship loading," said Di Brookman, an energy analyst at CLSA Asia-Pacific Markets.

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Link to an article just out in < a href="http://www.ft.com/cms/s/0/f90f8ed4-8b1d-11df-a4b4-00144feab49a.html">UK's Financial Times