BG will immediately implement phase one of the project, having received federal and state government environmental approvals for QCLNG. Santos’ GLNG Project, to be located nearby, was also recently granted federal environmental approval.
“Over the next four years, BG Group plans to invest approximately $15.2 billion in developing the liquefaction plant and related wells, field facilities and pipelines,”? the company said.
“There is also significant potential to expand QCLNG, with the construction of a third LNG train already covered by existing state and federal approvals.”?
BG will now issue final notices to proceed to the main contractors appointed for the development of the first phase of QCLNG, including: Bechtel for the engineering, procurement and construction of the liquefaction plant; WorleyParsons for gas field facilities and infrastructure development; and MCJV, a joint venture between McConnell Dowell and Consolidated Contractors Company, for the transmission pipeline network.
Queensland Resources Council Chief Executive Michael Roche has said that BG’s FID on the project demonstrates that Australia’s coal seam gas (CSG)-based export industry has moved “from pipedream to economic reality”? in less than a decade.
Queensland Premier Anna Bligh said that the FID would mean that the first of up to 5,000 workers involved in the overall project would be on the ground in Curtis Island this week.
The project is moving swiftly into the development phase – Enerflex has announced that it has received orders from BG Group subsidiary QGC for the delivery of multiple gas compressor units and process equipment with a total value of $193 million.
In addition, BG Group has announced that it had reached agreement with Chubu Electric Power Co. Inc for the long-term supply of LNG from BG Group’s global LNG portfolio, including LNG from the QCLNG plant.
The Heads of Agreement sets out the basis for Chubu Electric’s purchase of up to 120 cargoes over a 20-year term beginning in 2014. BG Group and Chubu Electric intend to complete negotiations and execute a fully termed LNG sale and purchase agreement in the first half of 2011.
The first phase of project construction will involve development of a two-train, 8.5 MMt/a liquefaction plant on Curtis Island near Gladstone, together with associated upstream and pipeline facilities.
First LNG exports are planned to commence from 2014, underpinned by agreements in Chile, China, Japan and Singapore for the purchase of up to 9.5 MMt/a of LNG.
The QCLNG Project will be operated by BG Group’s Australian subsidiary, QGC.