BG Group sanctions Queensland Curtis LNG project
BG Group has taken the final investment decision approving implementation of the first phase of the Queensland Curtis liquefied natural gas project (QCLNG) following receipt of Australian federal and state government environmental approvals. The first phase of QCLNG encompasses the development of a two-train liquefaction plant on Curtis Island near Gladstone in Queensland together with the associated upstream and pipeline facilities. BG Group will progress development and construction of QCLNG with immediate effect.
QCLNG will be operated by BG Group’s Australian subsidiary, QGC Pty Ltd. The first phase of the liquefaction plant will consist of two LNG trains with a combined capacity of 8.5 million tpy. Over the next four years (2011-2014), BG Group plans to invest approximately $15 billion in developing the liquefaction plant and related wells, field facilities and pipelines. There is also significant potential to expand QCLNG, with the construction of a third LNG train already covered by existing state and federal approvals.
First LNG exports are planned to commence from 2014, underpinned by agreements in Chile, China, Japan and Singapore for the purchase of up to 9.5 million tpy of LNG. Total gross discovered coal seam gas reserves and resources presently amount to an estimated 17.3 trillion cf – equivalent to more than 2.9 billion boe – with 2P (proved plus probable) reserves now estimated at 7 trillion cf.
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