Gladstone LNG (GLNG) joint venture partners have agreed to acquire the Greater Meridian Coal Seam Gas project from from Westside Corporation and Mitsui E&P Australia, GLNG joint venture partner Santos announced on August 23.

The transaction has been completed at a gross purchase price of A$430 million ($310 mn). Under the terms of the deal, each GLNG partner will acquire a pro-rate share in line with its GLNG joint venture interest.

Consequently, Santos will acquire the largest share and serve as operator. Santos will pay A$129 mn ($93 mn) for a 30% interest, Malaysia’s Petronas and France’s TotalEnergies will each take a 27.5% share, and Korea’s KOGAS will acquire the remaining 10% stake.

The project, based in Australia’s northeastern province of Queensland, possesses a long-term supply deal with GLNG, which was signed in 2015. Meridian also possesses a domestic gas contract with Queensland-based manufacturer Nitrates.

With the deal, a long-standing contracted supply relationship is transformed into GLNG equity production and represents Santos’ strategy to backfill the GLNG facility with owned production.

“The Meridian acquisition meets our disciplined capital allocation criteria, exceeds our internal hurdle rates, and is value accretive for Santos,” Santos Managing Director and Chief Executive Officer Kevin Gallagher said in a statement.

The GLNG export terminal is situated on Curtis Island and is comprised of two liquefaction trains that boast a total production capacity of 7.8 mn tonnes per year (tpy).

Feedstock gas for GLNG is piped 420 km to the facility from the Bowen Basin, which supplies gas for the Meridian field, as well as the Surat Basin. The Fairview, Arcadia, Roma and Scotia fields, which all split across the two basins also provide feedstock gas.

GLNG’s buyers consist of Petronas and KOGAS, which both hold 20-year foundation contracts.