QGC announces 1.7bn LNG investment in Queensland

Image credit: www.qgc.com.au

Leading natural gas explorer and producer QGC has announced a two-year, A$1.7 billion development of its natural gas tenements west of Wandoan to support gas production.

Image credit: www.qgc.com.au
Image credit: www.qgc.com.au

The investment, which was greenlighted by QGC’s parent company BG Group and its joint venture partners China National Offshore Corporation and Tokyo Gas, involves the construction of 300-400 wells, a large field compression station and associated pipelines and facilities that will feed into existing gas processing and water infrastructure at Woleebee Creek.

Managing Director Tony Nunan said the works were part of the continuous development of the company’s tenements in the Surat Basin, which aim to sustain natural gas supply to both domestic customers and the two-train Queensland Curtis LNG (QCLNG) liquefaction plant on Curtis Island, near Gladstone.

“This is a vote of confidence in the secure, long-term future of Queensland’s natural gas industry, which will employ Queenslanders for many years to come,” Mr Nunan said.

“The Charlie development will help to sustain the benefits of our investment in local communities and the state, including up to 1,600 construction jobs and business opportunities during the two-year project.”

Premier Annastacia Palaszczuk has welcomed an announcement by QGC, saying the $1.7 billion investment in the LNG industry was a much needed “shot in the arm” for the Queensland LNG industry.

“As the LNG industry in Queensland moves from the construction phase to the operational phase, there have been fewer jobs in the industry than there were in the boom years. QGC’s announcement today that they are investing another $1.7 billion in this industry is a welcome boost to the Queensland economy that will support 1600 jobs,” Ms Palaszczuk said.

“It shows that we have the right policy settings in Queensland and businesses such as QGC are confident in investing in our state. I visited Curtis Island in May this year to see their LNG plant and we will see millions of tonnes of LNG exported through the facility. I said then that the LNG industry had a strong future in Queensland and QGC’s announcement today is proof of that.”

State Development Minister Anthony Lynham said Queensland’s LNG exports were expected to reach the $15 billion mark by 2016-17.

“That means valuable export dollars and annual royalties while supporting thousands of jobs for Queensland. By 2018, Queensland could be the world’s fourth largest LNG exporter and, by the end of the decade, Australia has the potential to be the world’s leading LNG exporter,” Dr Lynham said.

“It’s not only operational and construction jobs that will be supported. It’s small businesses in local towns near construction that will also benefit.”

The construction work on the project will be undertaken by Leighton Contractors, which will build the major infrastructure on QGC property.