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Queensland Curtis liquefied natural gas project, Australia

12th June 2015

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

  

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Name and Location
Queensland Curtis liquefied natural gas (QCLNG) project, Queensland, Australia.

Client
QGC, a wholly owned subsidiary of BG Group, which holds an estimated 74% equity interest in the upstream resource and related infrastructure, and 100% of the project’s common facilities on Curtis Island, including LNG storage tanks and a jetty. In December last year, the company agreed to sell its 100% equity interest in the QCLNG pipeline to APA Group for $5-billion.

Project Description
The project involves the development of the coal seam gasfields in southern and central Queensland. The extracted gas will be transported through an underground pipeline network to Curtis Island, near Gladstone, where a liquefaction plant will be constructed to liquefy and export coal seam gas from the Surat basin. The plant is expected to have a production capacity of 8.5-million tons a year of LNG. The site can accommodate expansion to 12-million tons a year of LNG, subject to demand. In addition, the project will include the construction of a collection header pipeline and a 340 km 106.7-cm-diameter export trunk line, which will transport gas from Condamine to Gladstone.

Value
Phase 1 is budgeted at $20.4-billion.

Duration
The project was officially sanctioned on October 31, 2010. The QCLNG project loaded its first LNG cargo at the end of December.

The project has a 20-year life of operation.

Latest Developments
The QCLNG project was officially launched on May 15, after starting first production in December last year.

Since then, 16 LNG cargoes have been shipped from the QCLNG project, while commissioning and performance testing of the plant are undertaken.

Train 1 at the project is expected to reach plateau output of about four-million tonnes a year in the second quarter of 2015, with Train 2 expected to come on stream in the third quarter.

Plateau production from both trains of about eight-million tonnes a year should be achieved by mid-2016.

Key Contracts and Suppliers
Bechtel Oil, Gas & Chemicals (engineering, procurement and construction) and Iplex Pipelines (supply of pipeline systems).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Bechtel Oil, Gas & Chemicals, tel +61 7 31 67 5000 or fax +61 7 31 67 5001.
BG Group (UK), Neil Burrows, tel +44 11 8929 2462 or email neil.burrows@bg-group.com; or BG Group (Australia), Paul Larter,
tel +61 4 0077 6937 or email paul.larter@bg-group.com;
or Ben Myers, tel +61 4 0077 8833 or email ben.myers@bg-group.com.
QGC, tel +61 7 3024 9000, fax +61 7 3024 8999, or email qgc@qgc.com.au or info@qclng.com.au.
Tokyo Gas, tel +81 3 5722 0111.
Iplex Pipelines, tel +7 3881 9222 or fax +7 3881 1127.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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