Santos and its three GLNG joint venture partners have agreed to buy 100% of the Meridian coal seam gas project in Queensland from Westside Corporation and Mitsui E&P Australia for a gross price of A$430 million, or about US$310 million. Santos is taking a 30% share, matching its existing GLNG interest, for a net acquisition cost of about US$85-90 million, and will become operator once the deal closes. The move turns a long-standing gas supply contract into an ownership stake, giving Santos direct control of production it was already buying.

Deal terms

The gross purchase price carries an effective date of 1 January 2026. Once cash flows generated between that date and completion, along with transaction costs, are factored in, Santos' net cost falls to the US$85-90 million range. TotalEnergies, PETRONAS and KOGAS are each buying a pro-rata share matching their own GLNG stakes. Completion is targeted for late 2026 and is conditional on competition approvals, Foreign Investment Review Board clearance and Queensland government consents. Westside will provide transitional support for up to six months after completion.

The asset

Meridian is a producing coal seam gas project near Moura in Queensland, with 280 producing wells. Gas moves out through the GLNG Gas Transmission Pipeline and Jemena's Queensland Gas Pipeline. Current production is 47 TJ/d, with about 90% supplying GLNG under a long-term gas sales agreement that started in 2015, and the remainder going to domestic customer Queensland Nitrates at Moura. The Greater Meridian project holds 322 PJ of gross 2P reserves and 346 PJ of gross 2C resources as at 31 December 2025. On completion, Santos expects to book 17 mmboe of net 2P reserves and 18 mmboe of net 2C contingent resources, less volumes produced between 1 January 2026 and completion. The 2P reserves sit mostly within the PL94 license area. The 2C resources include an undeveloped area to the north known as the Mungis CSG project, which Santos said will be weighed as a separate, standalone investment decision.

Why Santos wants it

The acquisition raises Santos' proforma 2P reserves by 17 mmboe and proforma annual production by about 1 mmboe, and makes Meridian the fifth production hub feeding GLNG. Santos Managing Director and Chief Executive Officer Kevin Gallagher said the deal meets the company's capital allocation criteria and "exceeds our internal hurdle rates."

A separate divestment

Santos has also completed the sale of its 42.86% operated interest in the Mahalo joint venture in Queensland's Bowen Basin to Comet Ridge Mahalo Pty Ltd. Initial proceeds total about A$32 million, or US$23 million: a A$2 million deposit, A$22.42 million in cash at completion, and about 83.78 million Comet Ridge shares currently valued near A$7.5 million. A further A$30 million in contingent payments is tied to Mahalo production milestones, which could take total consideration to about A$62 million, or US$44 million, if the project moves ahead. Gallagher called the sale an example of Santos' "capital discipline" in monetizing pre-development assets outside its near-term priorities.