Santos Limited
(ASX:STO) is one of the companies behind two major liquefied natural gas projects in Queensland that have reached an agreement to jointly invest in secondary pipelines to allow gas to flow between the two projects.
The deal is between the developers of the $20 billion Gladstone LNG project on Curtis Island and the $16 billion Queensland Curtis LNG project.
Along with Santos, the projects involve Petronas, Total and Kogas, who are behind the Gladstone LNG project, as well as BG Group and QGC – which are the firms behind the Queensland Curtis LNG project.
The pipeline deal will also allow the two projects to be able to buy, sell and swap gas between themselves.
Santos says it expects the agreement will be one of many mutually beneficial arrangements across the industry in the future.
Santos generated a net profit of $518 million in its 2012 financial year.
