Business

Chinese company invests additional $2b into QCLNG projects

Wang Yilin of China National Offshore Oil Corporation and BG Group Chief Executive Chris Finlayson shake on the QCLNG deal. Photo Contributed
Wang Yilin of China National Offshore Oil Corporation and BG Group Chief Executive Chris Finlayson shake on the QCLNG deal. Photo Contributed Contributed

A CHINESE government corporation has stepped up its stake in Gladstone's LNG industry, signing a $2 billion deal for additional interests in the Queensland Curtis LNG (QCLNG) project.

QCLNG developer BG Group announced the deal with China National Offshore Oil Corporation (CNOOC) on Monday.

It will net CNOOC an extra 5 million tonnes of LNG a year, and boosts the corporation's stake in certain QCLNG interests to up to 50%.

At a signing ceremony in Brisbane, BG Group chief executive Chris Finlayson said CNOOC was a foundation partner in QCLNG, and among the first to recognise the value and strategic importance of the $20 billion Curtis Island project.

"This (is a) world-first project - a vision that is now coming to fruition as we move towards first LNG in 2014," he said.

Mr Finlayson said the new commitment for LNG supply to the corporation will make QCLNG the largest supplier of LNG to the world's fastest growing energy market.

It's also on schedule to be the world's first project to produce LNG from coal seam gas, with first exports due next year.

"More broadly, the agreements expand our strong LNG position in the Asia-Pacific region, where we are on schedule with our LNG export project on Curtis Island in Queensland," he said.

"We have signed long-term LNG sales contracts with customers in China, Japan and India; and, where we will soon begin importing LNG into Singapore through our position as sole gas market aggregator," Mr Finlayson said.

CNOOC will also reimburse BG Group for its share of QCLNG project expenditure incurred from the start of last year.

In return, it secures a 50% share in QCLNG Train 1, as well as shares in upstream assets.

BG Group's Australian business QGC remains operator and retains majority ownership of the QCLNG project, maintaining 74% of its original interest in the upstream resources and infrastructure.

It also maintains full ownership of "common facilities" on Curtis Island and the 540 kilometre natural gas pipeline network linking gas fields to Gladstone Harbour.

A spokesman for QGC said the deal didn't impact on whether the QCLNG project expanded to a third "train", or production unit, on Curtis Island.

"For the time being we are focused on developing two trains," he said.

"A third train depends on continued exploration of our Queensland tenements which cover about 30,000 square kilometres."

Topics:  bg group, china, foreign investment, gladstone, lng, queensland curtis lng project




BREAKING: Two rushed to hospital as crash shuts down busy Gladstone road

The crash on the corner of Tank St and Glenlyon St.

ACCIDENT directly outside Gladstone’s ambulance headquarters.

Gladstone girl with 'food poisoning' after drinking Woolworths juice box

Mum of two Patrice Cornell found "green gunk" in her daughter's juice box.

MUM claims daughter, 2, got food poisoning from rotten juice box.

BOM: Temperature to drop near freezing in Gladstone region tonight

This radar image depicts the temperature forecast for 7am on Thursday morning.

IT'S set to get icy in the Gladstone region tonight.

Latest deals and offers

The Bachelor host: this year's season is a cracker

The Bachelor host Osher Gunsberg.

GUNSBERG says tonight will be "the best night of TV of the year".

Kerri-Anne Kennerley to Sonia Kruger: "Stay brave"

She said her television peer should "stay brave"

Swimwear designer looking for love on The Bachelor

Noni Janur on her first day of filming.

The 25-year-old is one of 22 women vying for Richie Strahan’s heart

Three reasons your mind will be blown this week

Alan Dale and Jacki Weaver in a scene from the TV series Secret City.

THREE shows on Foxtel to make your mind boggle.

Elena wins MasterChef: “I’m ecstatic and eager to celebrate"

MasterChef Australia 2016 winner Elena Duggan, from Noosa.

NOOSA chefs survive marathon grand final dish by Heston Blumenthal.

You can own this Queensland town for just $1

Yelarbon

Unprecedented auction of town's business centre with no reserve

Work starts on $15M Caloundra apartment building

Turning the first sod at the Aqua View Apartments site in Kings Beach are (from left) husband-and-wife developers Alex Yuan and Stella Sun with construction company Tomkins director Mike Tomkins and Councillor Tim Dwyer.

Developers excited about addition to Kings Beach skyline

72-year-old Coast developer set to start new project

GREEN LIGHT: The Cosmopolitan has been approved for development at Cotton Tree.

Meet the Canberran set to deliver another chapter for Coast suburb

Plans revealed for 1500-lot 'master-planned community'

Precinct will be bounded by Boundary St and Shoesmith Rd

Ecco Ripley sales run sparks prime release

MOVING IN: Sekisui House has announced the release of more residential blocks at Ecco Ripley.

Sekisui House is preparing to unveil more land at Ecco Ripley

The climb is slow but property on the way up

Michael Matusik, director of Matusik Property Insights.Photo Allan Reinikka / The Morning Bulletin

The improvement would be mild when compared to past cycles