Business

World-first LNG project gets to delivery stage

ALL eyes are firmly on Gladstone harbour as QGC anticipates loading its first shipment of liquefied natural gas before the end of the year.

QGC's Queensland Curtis LNG plant will be the world's first project to turn natural gas from coal seams into liquefied natural gas.

The product, from QCLNG, will be exported via ship to Chile, China, Japan and Singapore.

It has taken just over four years for the company to reach the project's operational stage.

This has involved expanding QGC's gas production in the Surat Basin, building and connecting a 540km pipeline from the gas fields to Curtis Island and constructing the LNG plant.

QGC's parent company, BG Group, last week entered an agreement to sell the pipeline for $5 billion.

Preparation for safe operations at the plant have included the delivery of a $1.1 million fire truck that is specially designed for industrial facilities.

THE QCLNG plant on Curtis Island at Gladstone is ready to deliver its first shipment of liquefied natural gas.
THE QCLNG plant on Curtis Island at Gladstone is ready to deliver its first shipment of liquefied natural gas. CONTRIBUTED

While QGC is first off the block, Australian-owned Santos GLNG is expected to deliver its first LNG shipment in the second half of next year.

Santos announced on Thursday that the first of its three major gas processing hubs being built in Queensland gas fields had become fully operational.

Coal seam gas is compressed at the Fairview facility and sent along the company's 420km pipeline to Curtis Island.

The hub, about a two-hour drive north of Roma, was completed in October.

It is receiving natural gas and water from surrounding coal seams.

The APLNG plant is expected to deliver its first shipment of LNG in mid-2015.

QCLNG snapshot:

  • It will take about 13 hours to fill a ship with LNG. When full production ramps up, it is expected there will be 2-3 shiploads leaving the Gladstone harbour each week.
  • The pipeline between the Surat Basin and Curtis Island is 540km long
  • The gas is cooled to -162 degrees. At that temperature, the gas transforms into liquid
  • The project will generate about $1 billion a year in royalties, taxes and charges
  • QCLNG is committed to supplying 10 million tonnes of LNG to China, Japan, Singapore and Chile each year
  • QGC expects to drill 6000 wells over 4500sq km of tenements by 2030. Each costs about $1 million to drill. About 2000 have been drilled so far
  • One shipload contains about 140,000 tonnes of LNG, the same volume as each tank on Curtis Island
  • It takes about 32 hours for one molecule of gas to travel from the Surat Basin to Curtis Island
  • The QCLNG social impact management plan has so far resulted in more than $150 million being invested in local communities

Topics:  aplng curtis island gladstone glng lng qclng



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