Big deal for QR National
QR National has signed an agreement to haul Queensland Gas Company's (QGC) pipes from Gladstone to Biloela.
QR National said yesterday its specialist bulk freight subsidiary ARG would transport 260,000 tonnes of pipes from ports at Brisbane and Gladstone to central and southern Queensland over the next 10 months.
ARG Group general manager bulk east Chris Gregg said ARG would operate four trains a week from the Port of Brisbane to Miles and seven from the Port of Gladstone to Biloela, using flat double slot container wagons.
“This is an exciting development as it represents the first time we have tapped into the burgeoning new coal seam methane industry in Queensland, which aims to supply liquefied natural gas to world markets,” Mr Gregg said.
The pipes will be used to carry gas underground from wells in the Surat Basin to QGC's proposed processing facility at Curtis Island near Gladstone, where it will be converted to liquid for export.
The pipeline includes a 194km section in the gas fields around Chinchilla and a 334km main export line from near Miles to Gladstone. Each pipe is 12 metres long with a diameter of about a metre (or 42 inches).
“We are delighted to sign this contract because it keeps more trucks off the road with consequent benefits for local communities as well as leveraging off rail's advantages as a clean, safe and energy-efficient transport mode,” Mr Gregg said.
“It also further broadens the scope of ARG's activities across Queensland, which range from minerals and fertiliser to agricultural commodities such as sugar and grain along with livestock.”
QGC said the pipeline would be the largest-diameter gas pipe laid onshore in Australia and could not be manufactured by Australian steel mills because of its size. Baosteel, a unit of China's Baoshan Iron and Steel, manufactured the pipeline in Shanghai.
The deal was QGC's second with China, which is fast becoming a major business partner for the UK-based BG since it bought into two deepwater exploration blocks there in 2006.