Santos Secures Meridian Coal Seam Gas Project in Queensland Deal

Santos Ltd (ASX:STO), an Adelaide-headquartered oil and gas producer, has agreed to acquire full ownership of the Greater Meridian coal seam gas project in Queensland. This move reinforces Santos' position among ASX 50 energy majors and aims to sustain gas supply into the GLNG liquefied natural gas plant.

The GLNG partners will own the largest single stake in the project, and Santos will take on the operating role once the transaction completes. The deal requires regulatory and competition clearance before it can close, with completion targeted later this year.

Meridian is an established coal seam gas operation with a large number of active wells already in production, supplying a significant share of its output to GLNG under a long-run contract. Bringing Meridian fully under the GLNG partners' ownership lifts the venture's combined reserves position and adds incremental annual production, strengthening the feedstock base supporting the LNG plant.

The Mahalo exit reflects Santos' narrower focus on assets that most directly support GLNG feedstock and its broader east coast gas position. The transaction delivered Santos an upfront cash and scrip payment, with further amounts tied to future production milestones.