PMFORUM Breaking News
Breaking News in the Project Management World
Tuesday, March 02, 2010
QGC commits US$3 billion for Curtis Island LNG Project in Queensland
Reported by David Mathie in Kurrajong
QGC has announced that it will commit to contracts valued at more than US$3 billion in the first half of 2010 as it advances plans for its Queensland Curtis LNG Project on Curtis Island near Gladstone, Queensland, Australia. BG Group announced on 5 February 2010 that Bechtel Oil, Gas & Chemicals, Inc. has been awarded the engineering, procurement and construction contract for the Queensland Curtis LNG plant.
Bechtel has been issued an initial notice to proceed, as part of the US$3 billion commitments, to order long-lead items for the LNG plant such as compressors and storage tanks and to begin preparations for initial site construction.
Photo: Port of Gladstone near Curtis Island
QGC will also begin to commit to orders for materials and equipment for gas field development and construction of the collection header pipeline and 340km, 42-inch main export trunk line which will transport gas to Gladstone from QGC's coal seam gas acreage in the Surat Basin in southern Queensland. Gas field and pipeline long-lead items will include pipeline materials, compressors, electricity transmission infrastructure, equipment for water treatment facilities and rail, road and bridge upgrades.
Construction will begin after BG Group has made a final investment decision on the Queensland Curtis LNG Project later this year following receipt of Queensland and Federal Government environmental and regulatory approvals. Expenditure for the long-lead items will occur over the next four years and will accommodate the timing of government approvals. The long-lead item commitments will ensure the Queensland Curtis LNG Project remains on track to begin production in 2014.
QGC Managing Director and BG Group Executive Vice President Catherine Tanna (pictured right) said QGC was now well on the way to realising a world-class, new LNG business in Queensland. "We expect the Queensland Curtis LNG Project to create more than 5000 direct jobs during construction and more than 700 direct jobs during operations," she said.
"We also estimate our LNG business will generate A$32 billion in value-added activity for Queensland between now and 2021," she added. "QGC will continue to work with the Queensland and Federal Governments to ensure the project continues to meet all deadlines and begins LNG production as scheduled from 2014."
QGC Limited, a BG business, is a leading Australian coal seam gas explorer and producer focused on supplying cleaner hydrocarbon energy to growing domestic and international markets. QGC is establishing one of Australia's largest capital infrastructure projects to turn world-class reserves of coal seam gas into liquefied natural gas (LNG). Queensland Curtis LNG, a priority project for QGC, involves expanding exploration and development in southern and central Queensland and transporting gas via a 380km buried pipeline to Curtis Island near Gladstone, where it will be liquefied. For further information visit www.qgc.com.au or www.qclng.com.au.
BG Group plc (LSE: BG.L), based in the UK, is a world leader in natural gas, with a strategy focused on connecting competitively-priced resources to specific, high-value markets. Active in 27 countries on five continents, BG Group has a broad portfolio of exploration and production, liquefied natural gas (LNG), transmission and distribution and power generation business interests. It combines a deep understanding of gas markets with a proven track record in finding and commercialising reserves. For further information go to www.bg-group.com.
Source: QGC press release on 7 February 2010
Editor's note: Together with Tim Reigel, principal of QRE Pty Ltd, David Mathie is developing an up-market resort on the eastern seaboard of Curtis Island - www.turtlestreet.com.au.
QGC has announced that it will commit to contracts valued at more than US$3 billion in the first half of 2010 as it advances plans for its Queensland Curtis LNG Project on Curtis Island near Gladstone, Queensland, Australia. BG Group announced on 5 February 2010 that Bechtel Oil, Gas & Chemicals, Inc. has been awarded the engineering, procurement and construction contract for the Queensland Curtis LNG plant.
Photo: Port of Gladstone near Curtis Island
QGC will also begin to commit to orders for materials and equipment for gas field development and construction of the collection header pipeline and 340km, 42-inch main export trunk line which will transport gas to Gladstone from QGC's coal seam gas acreage in the Surat Basin in southern Queensland. Gas field and pipeline long-lead items will include pipeline materials, compressors, electricity transmission infrastructure, equipment for water treatment facilities and rail, road and bridge upgrades.
Construction will begin after BG Group has made a final investment decision on the Queensland Curtis LNG Project later this year following receipt of Queensland and Federal Government environmental and regulatory approvals. Expenditure for the long-lead items will occur over the next four years and will accommodate the timing of government approvals. The long-lead item commitments will ensure the Queensland Curtis LNG Project remains on track to begin production in 2014.
"We also estimate our LNG business will generate A$32 billion in value-added activity for Queensland between now and 2021," she added. "QGC will continue to work with the Queensland and Federal Governments to ensure the project continues to meet all deadlines and begins LNG production as scheduled from 2014."
QGC Limited, a BG business, is a leading Australian coal seam gas explorer and producer focused on supplying cleaner hydrocarbon energy to growing domestic and international markets. QGC is establishing one of Australia's largest capital infrastructure projects to turn world-class reserves of coal seam gas into liquefied natural gas (LNG). Queensland Curtis LNG, a priority project for QGC, involves expanding exploration and development in southern and central Queensland and transporting gas via a 380km buried pipeline to Curtis Island near Gladstone, where it will be liquefied. For further information visit www.qgc.com.au or www.qclng.com.au.
BG Group plc (LSE: BG.L), based in the UK, is a world leader in natural gas, with a strategy focused on connecting competitively-priced resources to specific, high-value markets. Active in 27 countries on five continents, BG Group has a broad portfolio of exploration and production, liquefied natural gas (LNG), transmission and distribution and power generation business interests. It combines a deep understanding of gas markets with a proven track record in finding and commercialising reserves. For further information go to www.bg-group.com.
Source: QGC press release on 7 February 2010
Editor's note: Together with Tim Reigel, principal of QRE Pty Ltd, David Mathie is developing an up-market resort on the eastern seaboard of Curtis Island - www.turtlestreet.com.au.