Under the agreement, QGC will supply 30 PJ of CSG to BOC over 15 years from July 2011, with an option for a further 15 years.
If the companies meet that deadline, Queensland will become the first state in Australia to produce LNG from CSG.
Queensland Premier Anna Bligh said “BOC intends to liquefy the gas at a micro-LNG plant to be built near next to the Condamine Power Station. Construction is expected to start in early 2011.”
Ms Bligh said the agreement heralded the start of a new industry for Queensland that could see heavy transport switch to LNG.
“Through this agreement, Queensland will join the rest of Australia as BOC develops a network of refuelling stations across the country for vehicles converted to run on LNG,” said Ms Bligh.
BOC plans to have a highway of LNG refuelling stations along the east coast of Australia.
QGC Managing Director Catherine Tanna said “This is a partnership in innovation in which QGC and BOC will use the natural resources of the region’s CSG to create an attractive new industry for Queensland.”
“QGC is committed to supplying the domestic gas market from our gas fields in southern Queensland as we continue to develop our Queensland Curtis LNG Project at Gladstone. “It’s gratifying that we are also on track to become the first to produce LNG from CSG,” she said.