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Monday, 01 December, 2008, 22:40 GMT | more >>

QGC corks deal with BG



By Upstream staff 

Australia’s coalbed methane producer Queensland Gas Company has completed a A$664 million (US$618 million) deal to form a world-scale liquefied natural gas alliance with the UK’s BG Group.

“The transfer of the funds today from BG Group marks BG’s first investment in Australia and reinforces the seriousness and credibility of the alliance with QGC,” Robert Bryan, chairman of QGC said today.

QGC will receive a further A$207 million from BG Group for the sale of another 10% of QGC’s interests in the Walloon coal seam gas acreage, upon the earlier of a positive final investment decision, or the certification of 7000 petajoules of proved and probable reserves.

Of the A$664 million, about A$415 buys BG a 20% stake in QGC’s existing interests in the Walloon coal seam gas acreage and the remaining A$249 million is in return for 81,278,451 new shares equal to 9.9% of QGC’s expanded capital at A$3.07 a share.

“We are in the enviable position of having no debt, almost A$800 million in cash in the bank, growing reserves of coal seam gas, a track record of success, and a professional partner in BG Group – a top 10 company on the London Stock Exchange,” QGC’s managing director, Richard Cottee, said today in a statement.

QGC and BG Group are working on a joint commitment for the annual export of between 3 million and 4 million tonnes of LNG from a plant proposed to be built near Gladstone on the central Queensland coast.


Friday, 11 April, 2008, 07:16 GMT  | last updated: Friday, 11 April, 2008, 07:18 GMT

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