BG turns to assets in Oz
BRITISH giant BG Group is turning its focus onto developing the extensive coal seam gas assets in Australia it acquired with the purchase of Queensland Gas Company.
“We are switching priorities to development of projects elsewhere, most notably the expansion of our new assets in Australia,” BG chief executive officer Frank Chapman said in a conference call last night.
Chapman added that while the company would focus on Australia, it would also focus on its assets in the US and Brazil.
“In the future, access to resources is going to be difficult,” he said. “The three countries are very good examples in BG’s portfolio where we believe we will be able to make very good progress in the future.”
BG acquired its Australian assets through the acquisition of QGC and takeover of Pure Energy Resources.
It is believed BG acquired Pure to secure enough CSG for its planned LNG project in Gladstone, Queensland.
The company is developing the Queensland Curtis LNG project at Gladstone, which will use CSG as feedstock to produce 7.5 million tonnes of LNG per annum under the first phase of development.
A final investment decision for the project, which has a total planned capacity of up to 12MMtpa, is expected in 2010.
The UK gas major has sufficient 2P (proved and probable) reserves to supply one train for 10 years and enough 3P (proven, probable and possible) reserves for 15 years of gas on two trains.
Chapman said the company’s progress in Australia was going very well and it was on track for sanction of QCLNG next year with first shipments in 2014.
Meanwhile, BG reported that its second-quarter profits dropped 31% to £513 million ($A1 billion).
Thursday, 30 July 2009
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