Business

Third train for Curtis Island's QCLNG now four years away

BG Group's QCLNG project on Curtis Island, Gladstone.
BG Group's QCLNG project on Curtis Island, Gladstone. BG Group

FURTHER expansion of Gladstone's QCLNG project is now four years away and has fallen behind BG Group's other projects in the US and Tanzania as growth options for the company. 

At a strategy presentation this week, BG chief executive Chris Finlayson pushed back the priority of expansion in Australia.

News Ltd reported Mr Finlayson said ramping up the QCLNG foundation project was one of the firm's biggest risks to hitting 2015 production guidance, and added he might be keen to further cull BG's stake in the project.

The delay of a Queensland LNG expansion comes as gas export proponents find it too expensive or too hard to sign off on new projects in Australia.

Former chairman Sir Frank Chapman had targeted a 2012 approval of a third LNG production unit, or train, at Gladstone, to follow on from the two trains under construction and due to start exporting next year.

When this target was not hit amid rising local construction costs, rains and increased Queensland regulation, which slowed the pace of onshore coal-seam gas exploration, the expansion was named as one of three LNG growth options.

Mr Finlayson told investors the QCLNG expansion was likely to be approved after the other two options. 

Full story here.

Topics:  curtis island, gladstone, lng, mining, qclng, resources




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