Through their Gladstone LNG (GLNG) project, Santos Ltd. and Petronas have proposed developing what would be the world's first large-scale coal seam gas (CSG) to liquefied natural gas (LNG) project. Santos and Petronas own 60% and 40% stakes, respectively, in the joint venture.

The project calls for producing CSG from the Surat and Bowen Basin gas fields in the interior of Australia's Queensland state and shipping it to Curtis Island near the central coastal city of Gladstone via a 425-km-long gas pipeline. On Curtis Island, the JV would build and operate a gas liquefaction and export facility and associated infrastructure. The liquefaction plant's initial capacity would be 3-4 million tonnes per annum (mtpa) but could be expanded to 10 mtpa.

According to Santos, major customers in Asia and the United States have expressed interest in purchasing LNG from the project, which would create 3,000 construction jobs and support more than 200 jobs during operations.

In December 2008, Santos and Petronas named Bechtel the front end engineering design (FEED) contractor for the downstream components of GLNG. Previously, Bechtel and Foster Wheeler had competed in a six-month duel pre-FEED process. The JV anticipates making a final investment decision on GLNG in the first half of 2010. Should it go forward, first cargoes of LNG are anticipated in 2014.