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Friday, 29 August, 2008, 01:10 GMT | more prices >>

Curtis LNG gets government nod

By Upstream staff

Australia’s Queensland Gas Company (QGC) and UK gas producer BG Group’s proposed Curtis liquefied natural gas project took a step forward today as the Queensland government declared the development significant status paving the way for environmental impact assessments.

The 3 million to 4 million tonne per year LNG project in Queensland, Australia, is an alliance between coalbed methane (CBM) player QGC and BG Group.

The companies are planning to develop CBM from the Surat basin in Queensland for Australian and international markets.

“QGC managing director Richard Cottee and BG Group Australia’s managing director David Maxwell welcomed the government’s declaration as a great step forward in establishing a major new export industry for Queensland.

The A$8 billion (US$7.68 million) project will involve an expansion of QGC's Surat Basin gas production operations near Chinchilla, the development of a new 380 kilometre pipeline to Gladstone on the Central Queensland coast and the construction of an LNG export facility at Curtis Island, near Gladstone.

A final investment decision on the project is expected in early 2010 with first LNG production from the new plant scheduled for the end of 2013.

The development has the potential to be expanded up to 12 million tonnes per year subject to additional gas reserves, QGC said in a statement today.

Over the next 18 months, the Queensland Curtis LNG project team will complete environmental studies over land, water, air, noise and visual impact, as well as study social and economic impact, plus safety and risk.