Premier and Minister for the Arts
The Honourable Anna Bligh
Wednesday, March 24, 2010
World first with Queensland LNG contract
Up to 8,500 Queensland jobs will be created and $60 billion in export activity
from the state is set to begin after the signing of a landmark deal for the
world’s biggest liquefied natural gas contract based on coal seam gas, Premier
Anna Bligh announced today.
The Premier said the gas would be supplied to China from 2014 from the
Queensland Curtis LNG Project which is currently under development in Gladstone
by the BG Group’s subsidiary, QGC Pty Limited,
with up to $10 billion expected to be spent in construction over the next four
Ms Bligh said the project included:
· A significant coal seam gas development in the Surat Basin
of southern Queensland
· A 540km pipeline network linking the gas fields near
Chinchilla to the LNG plant at Gladstone in central Queensland
· An LNG plant on Curtis Island, near Gladstone,
initially comprising two processing units, or “trains”, possibly to be followed
by a third unit.
“This is an historic day for Queensland’s mining industry, for our state’s
economy, for our regions and for our workforce,” Ms Bligh said.
“This agreement signals the beginning of a new era in the evolving LNG industry
with thousands of jobs and billions of dollars in export revenue for Queensland.
“It is placing Queensland front and centre of this growing industry and means we
are now a leading player in the global LNG market.
“At its peak during construction of the plant in Gladstone, gas fields in
Chinchilla and Miles and construction of the pipeline, it will have a peak work
force of 8,500.
“Once operational, this project will employ a further 1,000.
“The BG Group’s contract with the China National Offshore Oil Corporation is the
country’s largest LNG contract between two single companies and will supply 72
million tonnes over 20 years from 2014.
“Our government has actively encouraged and supported this industry and in 2008,
we declared the project significant and an environmental approval under Federal
and Queensland legislation is expected by mid-2010.”
With the support of the Bligh Government, the multi-billion dollar gas fields
will be centred in Surat Basin region with seven proposed projects in Gladstone
alone and another in Bowen at various stages.
Four have been declared significant projects overseen by the Coordinator General
and are at Environmental Impact Statement stage.
“It’s an indication of just how quickly this industry is growing in terms of the
BG Group’s commitment to development in Queensland that just two years ago they
had three employees in the state – today there are 700,” Ms Bligh said.
“This will place thousands more workers in this region and ultimately, this is
jobs for Queenslanders, royalties for the Queensland economy and billions of
dollars in infrastructure for this region and its future generations.”
The project is based on coal seam gas from QGC’s fields in the Surat Basin and
today’s contract is the world’s first fully termed sales and purchase agreement
for the supply of LNG from coal seam gas.
Australia’s largest previous LNG contract was for 82.5 million tonnes over 25
years between the North West Shelf Project, a consortium of six companies and
CNOOC. This contract was signed in 2002.
BG Group and CNOOC have also agreed to jointly participate in a consortium to
construct two LNG ships in China that will be owned by the consortium.
The agreement was signed today in Beijing by the CNOOC President, Fu Chengyu,
and the BG Group Chief Executive, Frank Chapman.