BG Group began commercial operations at the Queensland Curtis LNG plant (QCLNG) in east Australia after its subsidiary QGC assumed operational control of Train 1 from Bechtel Australia.
QCLNG. Image from BG Group.
First production from Train 1 began in December 2014, when QCLNG became the world’s first LNG facility to be supplied by natural gas sourced from coal seams and started loading the first cargo, A total of 16 LNG cargoes have been shipped to date. Train 2 is currently under construction and is set to begin operations in 3Q 2015.
Plateau production from QCLNG, expected next year, will have an output of around 8 MPTA of LNG a year.
QCLNG is comprised of five components that include the gas field, pipeline, LNG plant, swing basin, and channel and shipping operations. The project spreads across 4500sq km that connects more than 2000 onshore wells, which flow into a 540km pipeline to the liquefaction facility on Curtis Island. BG Group recently agreed to sell its 100% equity interest in the 540km pipeline to APA Group for US$4.5-5 billion.
In addition, BG’s Train 1 equity partner China National Offshore Oil Co. (CNOOC) approved the sale of the QCLNG gas pipeline. The sale of the pipeline remains on track for completion in 2Q 2015.
“We are pleased to be taking operational control of QCLNG following its successful start-up and commissioning over the past six months. The cargoes from Train 1, along with those from Train 2 when it starts up later this year, will add flexibility to BG Group’s LNG portfolio. The transfer of operational control, and CNOOC’s approval, have also progressed our pipeline disposal, which we expect to complete in the coming weeks," Helge Lund, BG Group chief executive said.
BG holds around 74% equity interest in the upstream resource and related infrastructure supplying QCLNG, and 100% of the project's common facilities on Curtis Island, which includes LNG storage tanks and jetty.
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