BG Group approves $15-bn investment in Australian LNG project
01 Nov 2010
The UK's third-largest oil and gas producer BG Group Plc announced Sunday that the company has taken a final decision on its major Australian liquefied natural gas (LNG) venture in Queensland, approving an investment of approximately $15 billion over the next four years.
BG's Australian subsidiary QGC Pty Limited, a leading explorer of coal seam gas (CSG) will operate the Queensland Curtis LNG (QCLNG) project that will have an initial capacity of 8.5 million tonnes per annum (mtpa).
The prestigious project, located on Curtis Island near Gladstone in northern Queensland, consists of two LNG trains with liquefaction plant, related oil wells, field facilities and a 540-km underground pipeline network.
QGC has already obtained the required environmental approvals from the federal and state governments for the QCLNG project. A proposed third LNG train is also covered by the existing approvals. Shipment of LNG from Curtis is expected to commence in 2014.
BG Group chief executive Frank Chapman said: ''In early 2008, we announced our first investment in Australia. Today, less than three years later, we are announcing our decision to develop the world's first LNG plant to be supplied by coal seam gas and the foundation project at the centre of a major new Australian export industry.''
QGC managing director Catherine Tanna said that the decision to proceed with the project has been taken after three years of rigorous regulatory and public review and discussions with more than 4,000 individuals, landholders, indigenous groups, conservationists, industry associations, regional councils, and government agencies.
