CSG, LNG, Markets, Projects, Technology

APLNG awards CSG pipeline contract

The scope of the works includes the design, engineering and construction of the pipeline to transport coal seam gas (CSG) from the Surat and Bowen basins to a proposed LNG processing site located at Laird Point on Curtis Island, Gladstone.

Construction on the pipeline will start in late 2011 with completion expected by the end of 2013, subject to a final investment decision for the project by APLNG joint venture partners Origin Energy and ConocoPhillips scheduled for the end of 2010.

A joint venture between Baulderstone and Bilfinger Berger Services has also been awarded the upstream facilites contract for the project.

Upstream operator Origin Energy Executive General Manager Paul Zealand said that the design studies for the upstream facilities and pipeline had been undertaken, and detailed engineering and preparatory works will continue.

“Both the pipeline and the upstream contracts are scalable to include the entire 450 kilometre gas transmission pipeline construction and a portion of the gas production facilities for the project.”?

In addition, APLNG has awarded a $220 million drilling and workover rig contract to Savanna Energy Services, which includes two hybrid drilling rigs and two workover rigs for a five-year term from September 2010, creating 50 jobs in Queensland.

Mr Zealand said “This contract is designed to provide the very latest in drilling and rig technology, supplement our existing drilling operations and help us to meet our target of between 300 and 500 wells a year over the life of the project.”?

Savanna will establish a new operational base in Queensland to support the contract and provide training and support facilities for local crews and rig management.

The APLNG Project will involve a four train CSG to LNG development utilising Origin’s Queensland CSG reserves and resources. Origin will act as the upstream CSG operator and ConocoPhillips will be the downstream LNG operator, with the joint venture company to market the LNG.

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