SANTOS has announced its GLNG project on Curtis Island at Gladstone is nearly 95% complete and is expected to produce first LNG around the end of the third quarter this year.

Previous guidance for first LNG was in the second half of this year.

Santos managing director and chief executive officer David Knox said the progress at GLNG over the past year had been excellent.

"This announcement highlights our confidence of delivering this transformational project on time and within the US$18.5 billion budget," Mr Knox said.

"The project has continued to go from strength to strength and we have made significant progress on the ground in 2014 and in the first quarter of this year.

"The delivery of GLNG will consolidate our strategic LNG portfolio and further position us as a key player in the growing Asian gas market."

Santos vice president downstream GLNG Rod Duke acknowledged the hard work and dedication of the project team in delivering the key milestones to date.

"It has been a fantastic year of progress at GLNG, with recent milestones including the introduction of first gas into the LNG plant and the successful firing of the first two gas turbine generators," Mr Duke said.