Australian energy firm Santos along with its joint-venture partners have committed to investing $16 billion into the Queensland economy in the coming five years through the Gladstone gas project.
The 7.8 million ton-a-year liquefied natural gas project will provide 6,000 jobs in its entirety comprised of some 5,000 jobs in construction in addition to 1,000 permanent jobs in production
Santos Chief Executive David Knox said approval of the project came at a very difficult time for the state of Queensland, which is currently confronting the human and economic cost of severe flooding across many communities.
Investment will be split into KOGAS with a 15 percent stake, Total and Petronas with 27.5 percent each and Santos with 30 percent. It is one of the major gas projects in the state that will target the Asian market.
The project may encounter difficulties in terms of hiring since the devastation brought about by flood waters will increase demand for skilled workers in the state as it works towards repairing infrastructure.
Its timetable may not be delayed much because of the flooding since hiring needs for the Gladstone project is expected to be great in 2013 since it aims to make its first gas delivery by 2015. It will build its coal seam gas resources in the Bowen and Surat Basins in south-east Queensland in addition to a 420-kilometer gas transmission pipeline from the gas fields to Gladstone.