Santos raises Gladstone LNG project cost estimate

PERTH, April 8 (Reuters) - Australian oil and gas producer Santos Ltd (STO.AX: Quote, Profile, Research, Stock Buzz) said on Tuesday costs for its proposed Gladstone liquefied natural gas (LNG) project in Queensland state were expected to be A$7.7 billion ($7.1 billion), up from a previous estimate of A$7 billion.

Santos' acting chief executive, David Knox, also told reporters that there was strong interest in buying gas from the project.

Santos said it plans to make a final investment decision on Gladstone by 2009 and it was targetting first LNG production by 2014.

(Reporting by Fayen Wong)