QGC Pty Ltd., along with joint venture partners China National Offshore Oil Corp. and Tokyo Gas, reported Monday a two-year, $1.2 billion (AUD 1.7 billion) development of its natural gas tenements west of Wandoan to support gas production for the Queensland Curtis liquefied natural gas (LNG) project in Australia.
The investment, which follows receipt of Commonwealth and State Government environmental approvals, has been approved by QGC’s parent company BG Group and the joint venture partners.
BG Group’s share of the investment is within the Group's previously disclosed capital expenditure program. QGC has a 73.75% interest in the relevant natural gas tenements.
The development, known as Charlie, 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.
The works are part of the continuous development of QGC’s tenements in the Surat Basin to sustain natural gas supply to both domestic customers and the two-train Queensland Curtis LNG (QCLNG) liquefaction plant on Curtis Island, near Gladstone. The QCLNG plant has delivered 62 cargoes since first LNG production in December 2014.
QGC, which has appointed Leighton Contractors Pty Ltd. as the main works contractor, will progress development and construction immediately. Major infrastructure will be built on QGC property.
Managing Director Tony Nunan said that this was an important investment in the future of QGC’s operations and was built on the world’s first production of LNG from coal seams in the past year.