Santos pipeline news

Santos Ltd and its partners have appointed Goldman Sachs to run the sale of the gas pipeline supplying their Gladstone LNG plant, Santos' chief said earlier today.

There had been questions over whether Santos' joint venture partners would be willing to sell, but Santos Managing Director David Knox said the partners were now "fully engaged".

"We will progress this during 2015," he told analysts after reporting a 6% rise in annual underlying profit.

Santos is pushing ahead with the sale of the gas pipeline in Queensland, as it turns over every stone to take pressure off its balance sheet after the plunge in crude oil prices.

Santos is also seeking a buyer for up to 30% of its Gunnedah coal seam gas venture in NSW, and has not ruled out other asset sales as part of what Mr Knox described as a "comprehensive" response to the dive in oil prices.

The company has frozen pay for employees and cut more than 500 jobs after the price collapse.

The move to sell the GLNG pipeline follows BG Group's successful US$5 billion deal in December to sell a similar line to APA Group. Origin Energy is also looking at such a divestment for its Australia Pacific LNG venture and potential bidders are already lining up, with DUET Group managing director David Bartholomew declaring his company's potential interest today.

Edited from various sources by Elizabeth Corner

Sources: Reuters, The Age

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