The new agreements between the Santos GLNG and Australia Pacific LNG projects will make gas transportation more efficient between the two projects’ Surat Basin gas fields in Queensland, and reduce the need for additional pipeline infrastructure.

The first pipeline connection located on the Santos-operated Fairview gas field, north of Roma will enable significant volumes of gas to flow bi-directionally between Santos GLNG and Australia Pacific LNG.

The second pipeline will connect the Santos GLNG Scotia gas field, east of Roma, to Australia Pacific LNG’s main gas transmission pipeline.

Santos Queensland vice president Trevor Brown said,"this agreement demonstrates the real efforts that Queensland’s LNG projects are making to work together to reduce costs and deliver long-lasting efficiencies.

"It’s a win-win for both projects and puts us in a strong position as we work towards the delivery of first LNG in 2015," Brown added.

Under the terms of the agreement, two pipeline connection points will be built between Santos GLNG and Australia Pacific LNG infrastructure and a number of gas swap agreements undertaken to minimise gas movements and operational costs.