Chinese suitor to offload $300m CSG asset

It is understood Westside Energy’s stake in the Meridian Gas Plant is up for sale.

Westside Energy is believed to have launched a sale process for the Meridian Gas Plant in Queensland’s Bowen Basin, with Beach Energy and GLNG named as possible buyers.

The half share in the asset is thought to be worth about $300m. Westside owns it in joint venture with Japan’s Mitsui.

China’s Landbridge Group is Westside’s owner.

Speculation has been mounting the Kerry Stokes-backed Beach Energy is on the hunt for CSG opportunities in Queensland, but was focused on those of scale. The David Crisafulli-led state government is welcoming new CSG developments there.

The Queensland-based Gladstone LNG, or GLNG, is a joint venture involving Santos, Petronas, TotalEnergies and KOGAS.

Meridian consists of CSG permits which are the closest producing gas fields to the LNG export facilities at Gladstone.

They are connected to both the GLNG pipeline and the domestic market via the Queensland Gas Pipeline.

Westside is also a participant in the Wallumbilla Gas Exchange and can supply gas into the east coast domestic gas market, via the Wallumbilla Hub.

Developments have been underpinned by a 20-year gas sale agreement to sell gas to the GLNG project at oil-linked prices, offering long-term customer security and a flexible path to expand production.

Other potential suitors include Origin Energy through APLNG or the Shell-backed QLNG Curtis LNG project as they look to shore up gas supplies for their plants.

Westside is understood to have appointed an investment banking adviser to the sale, with sources pointing to RBC.