QCLNG gets conditional green light

These include community and social benefits such as the provision of affordable housing for Gladstone and the Western Downs.

Bligh added that QGC, BG’s wholly owned subsidiary which operates QCLNG, would have to develop a plan to ensure maximum participation by local and Queensland suppliers.

“Approval from the Queensland government is another important step as we develop the QCLNG project,” QGC managing director Catherine Tanna said.

She added the company would comply with the conditions imposed by the Coordinator-General and noted the BG board would consider a final investment decision for the project later this year, subject to acceptable fiscal terms and environmental approvals.

Federal government environmental approval is expected around mid-2011.

QGC said the project is expected to generate more than 5000 direct jobs during construction and more than 700 jobs during operations though Bligh was more optimistic, saying it could create up to 8000 jobs.

The approval covers an expansion of QGC’s existing coal seam gas operations in the Surat Basin, which will feed the project through a 540km underground pipeline network; as well as the LNG plant on Curtis Island.

QCLNG is targeted to start producing from 2014 and is underpinned by global LNG supply agreements for up to 8.3MMtpa, consisting of a 20-year 3.6MMtpa agreement with CNOOC, a 2-year 1.7MMtpa supply agreement to Chile and a 20-year agreement to supply up to 3MMtpa to Singapore.

Friday, 25 June 2010
PetroleumNews.net