Gladstone LNG wins environmental approval for 2,650 wells, 435 km of pipeline, 3 trains

Source: Gladstone LNG

Gladstone LNG became Australia’s first major coal seam gas to LNG project to receive its environmental approval from the Queensland government. 

The Gladstone LNG project is a joint venture between Australia’s largest domestic gas producer, Santos, and Malaysia’s national oil and gas company, PETRONAS, the world’s second largest LNG exporter. 

The environmental approval follows review of the project’s Environmental Impact Statement (EIS) by the Queensland Coordinator-General. The review involved widespread community consultation. 

The environmental approval process will now continue with Federal Government consideration of the project.
The Queensland Government approval covers the development of coal seam gas resources in the Bowen and Surat Basins around Roma, construction of a pipeline from the gas fields to the coast, and construction of up to three processing trains at a liquefied natural gas (LNG) plant and export facility on Curtis Island, off Gladstone. 

GLNG will create about 5,000 construction jobs and 1,000 permanent operational jobs when the project commences shipments of LNG in 2014. 

Santos and PETRONAS will complete detailed engineering studies on the project before a final investment decision is made on GLNG. 

The project partners remain concerned about the potential impact of the Federal Government’s proposed new resources tax. 

Gladstone LNG Project Scope

Gladstone Liquefied Natural Gas is a pioneering project to convert coal seam gas (CSG) to liquefied natural gas, representing a major investment in a cleaner energy source for the future. The project is led by Santos, Australia’s largest domestic gas producer, in partnership with PETRONAS, Malaysia’s national oil and gas company and the world’s second largest LNG exporter. 

The Queensland Government environmental approval covers drilling 2,650 wells over 25 years over 6,800sq km in the Surat and Bowen Basins, 435km of 42” diameter steel pipeline from Fairview gas fields to Gladstone, three LNG train facility on Curtis Island with nominal capacity of 10mtpa, export jetty and materials offloading facility on Curtis Island , and a workers camp on Curtis Island to accommodate up to 1,500 construction personnel.
GLNG has a binding offtake agreement to sell up to three million tonnes of LNG per annum to PETRONAS, which underpins its first LNG train. The offtake agreement with PETRONAS is Australia’s largest trade agreement with Malaysia.

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