Australia Pacific liquefied natural gas project, Australia

15th February 2019 By: Sheila Barradas - Creamer Media Research Coordinator & Senior Deputy Editor

Australia Pacific liquefied natural gas project, Australia

Name of the Project
Australia Pacific liquefied natural gas (APLNG) project.

Location
Australia.

Client
APLNG, a 50:50 joint venture between Origin Energy and ConocoPhillips. Sinopec has agreed to subscribe to a 15% equity interest in APLNG.

On completion of the transaction, the ownership interest of Origin and ConocoPhillips will be reduced to 42.5%.

Project Description
The project will consist of the further development of APLNG’s gasfields in the Surat and Bowen basins, in south-western and central Queensland respectively; a gas pipeline from the gasfields to a liquefied natural gas (LNG) facility, in Gladstone, Queensland; and an LNG facility on Curtis Island, in Gladstone, the first two trains of which will have a processing capacity of up to nine-million tonnes a year.

About 8.6-million tonnes a year of LNG production from APLNG had been committed under long-term take-or-pay contracts with Sinopec, in China, and Kansai, in Japan.

Jobs to be Created
Not stated.

Value
The cost of the project is estimated at $24.7-billion.

Duration
The start of shipments from APLNG started in January 2016.

Latest Developments
Cimic has been awarded a A$90-million gas-gathering and infrastructure works contract for the APLNG project.

The contract is expected to deliver more than 300 coal seam gas wells over a two-year period, in addition to the more than 800 wells already delivered by Cimic subsidiary CPB Contractors for APLNG over the past five years.

Work under the new contract includes infrastructure for access tracks, as well as site lease pad preparation, gas and water pipeline gathering networks, electrical supply networks and the rehabilitation of right of ways after installations are complete.

Key Contracts and Suppliers
Cimic (gas gathering and infrastructure works).

On Budget and on Time?
A review of the APLNG project has increased the estimated price from $23-billion to $24.7-billion.

Contact Details for Project Information
APLNG external affairs manager Fiona McLeod, tel +61 7 3021 3325.