Santos Limited · ASX:STO
Santos — Australian Gas Conference 2011
15 slides from Santos's conference presentation, Oct 31, 2011
Slide 1: Opportunities and Challenges for Australian Gas
Santos Ltd ABN 80 007 550 923 Ground Floor, Santos Centre 60 Flinders Street Adelaide South Australia 5000 GPO Box 2455 Adelaide South Australia 5001 Direct: + 61 8 8116 5000 Facsimile: + 61 8 8116 6723 For personal use only TO: Company Announcements Office ASX Limited FROM: Company Secretary DATE:
Slide 2: For personal use only
For personal use only Good morning everyone and thank you Pat for that introduction. I am delighted to be here today as this panel considers the important role of Australian natural gas in meeting Australia’s and the world’s energy demands. This is an exciting time for our industry, and especially f
Slide 3: Santos vision and strategy
For personal use only At Santos our vision is simple: p To be a leading g independent p energy gy company p yp positioned to meet Australia’s and Asia’s future energy needs. For more than half a century Santos has been one of the largest suppliers of natural gas to the Australian domestic market. On
Slide 4: Growing gas demand in Eastern Australia
For personal use only But it is not just Asia where gas demand is growing. Population growth and economic expansion – as well as the search for a lower-carbon alternative to coal – will drive continued growth in demand for gas within Australia. At Santos, we expect Eastern Australian gas demand to t
Slide 5: Gas price trends
For personal use only As you can see from this slide, the trend to higher prices is being driven by stronger demand and higher development costs. LNG contracts with Asian customers, underpinned by oil-linked pricing, have been necessary to support the size and scale of investment required for LNG pr
Slide 6: Affordability of higher gas prices
For personal use only We believe that this move to moderately higher gas prices is affordable for our customers. Domestically – transmission and marketing costs represent the overwhelming portion of prices paid by end users – these take our wholesale price of $4GJ to a retail price of circa $21 GJ.
Slide 7: Eastern Australian gas reserves
For personal use only Having covered the increased demand for East Coast gas and the resultant impact on price i – I would ld lik like tto now tturn tto the th resource opportunity t it ini E Eastern t Australia A t li Lets look at the scale of Eastern Australia’s current natural gas reserves. In it
Slide 8: Cooper Basin conventional gas potential
For personal use only What is really exciting for Santos’ Eastern Australian business is the opportunity to significantly convert huge amounts of prospective resource into available gas reserves. Firstly looking at Santos’ home base in the Cooper – which until recently has been regarded as a mature
Slide 9: Cooper Basin unconventional resources
For personal use only Unconventional resources in the Cooper Basin add materially to the Eastern Seaboard’s growth potential. There has been a great deal of activity, particularly in the US, on shale gas. Santos has quietly been leading the way on shale and other similar unconventional gas targets i
Slide 10: NSW coal seam gas and Gunnedah
For personal use only Of course, here in NSW there is much attention on the potential of this state’s coal seam gas resources. With our proposed merger with Eastern Star Gas obtaining shareholder approval last week, and subject to the Court’s approval of the scheme later this week, Santos is now the
Slide 11: Exploration test wells and community support
For personal use only Santos understands that a significant NSW gas development, with its associated economic benefits will not proceed without strong community and government support support. This support will not be forthcoming unless the industry at large can address concerns about its activities
Slide 12: CSG and agriculture concerns
For personal use only Currently there is a lot of noise in the public discussion of coal seam gas. Many of the concerns raised are false or exaggerated, but the genuine concerns centre on two key themes: • The impact of CSG on traditional agriculture; and • The impacts on water – both the quality an
Slide 13: CSG and water use
For personal use only The production of CSG does require the extraction of water, not from shallow aquifers used by agriculture, i lt b butt ffrom deep d coall seams, h hundreds d d off metres t b below l th the water t ffarmers, ttowns and d other businesses use. In the Namoi Catchment area, NSW, t
Slide 14: Benefits and closing remarks
For personal use only The rewards of getting it right are enormous: our Australian and Asian customers will benefit from the energy security and environmental benefits of natural gas, while Australia – and in particular rural and regional Australia – will benefit from the jobs, investment and tax re
Slide 15: Disclaimer & Important Notice
Disclaimer & Important Notice This presentation contains forward looking statements that are subject to risk factors associated with the oil and gas industry. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range of variables which cou