Santos Flags $1 Billion Gladstone LNG Charge on Gas Supply
- Ramp up of GLNG equity gas has been slower than anticipated
- Asian spot LNG prices have fallen more than 25% past year
Santos Books $1.05B Writedown on LNG Project
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Santos Ltd. will take a $1.05 billion writedown on its Gladstone LNG project due to rising prices for third-party gas supplies and slower-than-expected ramp up of its own equity output to feed the export project.
The non-cash charge on the liquefied natural gas development in Queensland, which is $1.5 billion before taxes, will be recorded in its half-year results on Friday, the Adelaide-based company said in a statement Monday to the Australian stock exchange. The writedown won’t impact debt facilities, the country’s third-largest gas producer said.