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Wednesday, 07 January, 2009, 22:40 GMT | more >>

BG pours $595m into Aussie QGC



By Upstream staff 

Global gas giant BG today said that it will hook-up with Australian coal seam gas producer Queensland Gas Company (QGC) in a million dollar deal.

The deal marks the British company’s first investment in Australia and will see the two companies work together in the exploration and development of onshore coal seam gas acreage, domestic market opportunities and a new liquefied natural gas project on the Queensland coast.

BG will buy a 20% stake in QGC’s coal seam gas assets in the Surat Basin and South West Queensland, plus a 9.9% slice in QGC for $US595 million.

The British group will take an additional 10% interest in QGC’s coal seam gas and other assets once either the proven and probable reserves of 6.6 trillion cubic feet are shawed up or the final investment approval is given for the LNG project.

The LNG facility will process and export jointly-marketed coal seam gas.

BG Group will hold a 70% interest in the LNG facility and will offtake 100% of its initial planned production. The deal is conditional upon necessary governmental and regulatory approvals.

QGC and BG have also agreed to cooperate in the evaluation of further coal seam gas opportunities in India, where BG Group already has established upstream and downstream business interests.

“This alliance with QGC will secure access to new and commercially-proven sources of gas, with significant reserves potential within reach of Australian and Asia-Pacific markets,” said BG’s chief executive, Frank Chapman.


Friday, 01 February, 2008, 09:27 GMT  | last updated: Friday, 01 February, 2008, 09:27 GMT

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