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Santos buys Meridian gas project for $600M
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Santos buys Meridian gas project for $600M

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  • The GLNG joint venture led by Santos agreed to buy the Greater Meridian coal seam gas project in Queensland for $600 million.
  • Santos will pay between US$85 million and US$90 million for its 30% stake while also completing a separate asset sale to Comet Ridge for about $32 million.
  • The company stated that the purchase aligns with its strategy to sustain the venture with owned production.

The GLNG joint venture led by Santos (ASX:STO) executed an agreement to purchase the Greater Meridian coal seam gas project in Queensland for $600 million.

The acquisition replaces a long-term supply arrangement where the project provided gas to the venture for several years.

"The Meridian acquisition meets our disciplined capital allocation criteria, exceeds our internal hurdle rates, and is value accretive for Santos," said Santos CEO Kevin Gallagher.

The transaction involves each venture partner acquiring a pro-rata share, with Adelaide-based Santos taking a 30% interest and becoming the project operator for a net cost of between US$85 million and US$90 million.

The company stated that the purchase supports its strategy to maintain production levels amid upcoming federal gas reservation policies.

Following the announcement, the Santos share price was up at $8.23.

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