GLNG in pole position to buy $600m-plus Meridian gas plant

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

Gladstone LNG is believed to be the frontrunner to buy the Meridian gas plant in Queensland’s Bowen Basin, which some estimate could sell for well over $600m.

Earlier, it was believed Westside Energy was selling its half share of the asset, but now it is understood the other owner, Mitsui, is also offering its interest on the market, which would result in a full sale of the business.

The two owners are believed to be self-advised, but RBC is believed to be close to one of the suitors.

Westside’s owner is China’s Landbridge Group.

Speculation has been mounting that the Kerry Stokes-backed Beach Energy is on the hunt for CSG opportunities in Queensland, but it was focused on those of scale.

The David Crisafulli-led state government is welcoming new CSG developments in Queensland.

Queensland’s Gladstone LNG, or GLNG, is a joint venture involving Santos, Petronas, Total­Energies and KOGAS.

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

They are connected to the GLNG pipeline and 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.