Santos has announced that is has secured a loan facility worth $2 billion from nine banks as it pushes ahead with its projects for liquefied natural gas in spite of the previous week's environmental holdup.

Peter Wasow, Santos's chief financial officer and executive vice president, stated that the money would be utilized to fund a facility worth $700 million which is maturing from 2011 to 2013, and to develop its LNG plans, specifically the Gladstone project worth $8 billion in Queensland. This indicates that Santos will have funds available amounting to $6 billion, which includes project and corporate debt facilities, and cash.

However, Santos may require more funds, with projections that the $8 billion cost for the LNG projects will increase.

''Importantly, this facility provides Santos with significant additional liquidity during the scheduled construction period of GLNG and Papua New Guinea LNG, and delivers average maturities beyond first LNG production from the two projects,'' Santos's CFO said.

The news will give some push for the firm's LNG project in Gladstone after Peter Garrett, Minister for Environment Protection, announced last week that he was delaying clearance decisions for the gas project due to environmental issues.

The Coordinator-General of Queensland had disclosed concerns about Santos's strategies on water management and some possible danger to the welfare of the Great Artesian Basin.

Despite the holdup, Santos asserts that it will not be a cause for delay regarding fiscal investment decisions, which is projected by the end of the fiscal year.

Mr. Wasow stated that 13 different banks bid them up to $2.9 billion for financing, which, according to him, indicates Santos's standing in the financial community.

''The strong support we received from existing and new lenders demonstrates the strength of the Santos business and financial profile,'' he remarked.

Goldman Sachs JBWere adds: "[Santos's announcement was] unlikely in our view to alleviate market concerns that Santos may seek to raise further [discounted] equity funds at the time of an investment decision."