Australian energy company Santos said Thursday it was mulling its options after finding the Bonaparte LNG project doesn't meet its commercial interests.

Santos said it would consider other development options for the Petrel, Tern and Frigate natural gas fields, including the possibility of building a pipeline from the fields in the Timor Sea. Santos has a 40 percent interest in the developments alongside French company GDF Suez.

"While the partners firmly believe the fields have material value, having been fully appraised, their future development using floating [liquefied natural gas] technology ... does not currently meet the companies' commercial requirements," the company said in a joint statement with its French partner.

Dubbed the Bonaparte LNG project, the partners said they're no longer moving ahead with front-end engineering and design.

Australia is a leading exporter of LNG and energy companies operating there have secured long-term supply contracts with Asian countries hungry for more gas supplies.

The Bonaparte announcement follows a decision from Royal Dutch Shell to sell off most of its shares in Australian energy company Woodside Petroleum.