First stage to produce mass LNG

QUEENSLAND Gas Company’s LNG project’s first stage will comprise two processing units, known as LNG trains, at the Curtis Island plant.

These trains, which have a design life of at least 20 years, will produce a combined 8.5 million tonnes of LNG a year.

The site can accommodate an expansion to 12mt of LNG a year, subject to demand.

Construction is scheduled to begin today, with the first LNG delivery expected in 2014. The proposed LNG plant will occupy less than 1% of Curtis Island and will be separated from public areas by an environmental protection zone.

QGC has binding commitments with LNG customers in China, Japan, Singapore and Chile, and will also continue to provide gas to markets in eastern Australia.

Over four years, the project will create an estimated 5000 jobs and, from 2014, nearly 1000 jobs in operations.

QGC estimates the project will increase economic activity in Queensland by A$32 billion over the project’s first decade, or A$2.6 billion a year.

They also expect to pay about A$1 billion a year in federal taxes and a further A$300 million or so each year in royalties to the Queensland Government.

Half of the project’s total capital outlay over the next four years is to be spent with Queensland and Australian firms and about 80% of operating expenditure over the next 20 years is to be spent locally.

Project benefits will include treatment of saline water produced with the gas for its re-use in local agriculture, towns and industry in the Surat Basin.

BG Group’s FID implements the company’s agreements with the China National Offshore Oil Corporation, signed in March 2010.

The project will have an operating life of at least 20 years.