The state of Queensland: under construction

QCLNG Project

QCLNG shareholders

  • CNOCC 50%

  • BG Group 50%

Pecentage complete <65% Scope

The Queensland Curtis LNG (QCLNG) Project is an $8 billion onshore CSG-to-LNG production and export facility on the Queensland coast. The project includes a 340 km 1,066.8 mm fusion-bonded epoxy (external) and two-pack epoxy (internal) export pipeline from Wandoan in the Surat Basin to northeast of Gladstone. It has a maximum operating pressure of 10.2 megapascals (MPa) with API 5L X70 pipe grade steel.

The pipeline system also includes the Narrows Crossing development, which is a 12.7 km pipeline from Gladstone to Curtis Island. The pipeline has an outside diameter of 1,067 mm, steel grade of API 5L X70, a yield strength of 485 MPa and was coated with fusion-bonded epoxy.

Highlights

  • Both LNG storage tank roofs were raised in the first half of 2013;

  • In February 2013, engineers from QGC simultaneously laid two 1 m diameter gas pipelines across Gladstone Harbour to Curtis Island. The five-day operation to winch the pipelines 2.3 km from the mainland to the island represented Australia’s longest large-diameter underwater “˜pipe pull’;

  • In July 2013, Santos GLNG and QGC signed a gas-sharing agreement that aims to support plant operation flexibility and efficiency for the life of both the GLNG and QCLNG projects.

  • Construction of the liquefaction plant on Curtis Island continued;

  • All 80 modular components for the trains have been built, transported to Curtis Island and placed on their foundations;

  • The entire pipeline network has been buried and testing for strength and integrity has been completed ahead of final commissioning before the end of 2013;

  • In August 2013, gas flowed from Kenya Central Processing Plant into the pipeline network in August in readiness for commissioning; and,

  • Three of six planned field compression stations and the one central processing plant in the Ruby Jo block are expected to begin commissioning soon.

GLNG Project

GLNG shareholders

  • KOGAS 15%

  • Santos 30%

  • PETRONAS 27.5%

  • Total 27.5%

Percentage complete <72% Scope

The Gladstone LNG (GLNG) Project involves the development of gas fields in the Bowen and Surat basins, the construction of a
420 km underground gas transmission pipeline, and a two-train LNG processing facility on Curtis Island.

The project includes an API 5L X70 PSL2-grade 420 km, 1,067 mm diameter gas transmission pipeline linking a compression station at Santos’ Fairview Bowen and Roma coal seam gas fields in the Surat Basin to the liquefaction plant.

Highlights

  • In April 2013, Santos commenced tunnelling works underneath the Narrows Crossing and by November 2013 the tunnel had reached a distance of 3.3 km, with only 1 km remaining before the tunnel boring machine broke the surface at Curtis Island;

  • In July 2013, Santos GLNG and QGC signed a gas-sharing agreement that aims to support plant operation flexibility and efficiency for the life of both the GLNG and QCLNG projects. The agreement links both projects’ major pipelines in two places – one on the western side of The Narrows Crossing near Mount Larcom in central Queensland, and one on Curtis Island;

  • In November 2013, a gas swap and infrastructure connection agreement was signed with the APLNG Project which will see two new pipeline connection points built between existing infrastructure;

  • The first new development wells are on line and dewatering at Fairview and Roma, with average drilling and completion costs of $1.35 million per development well;

  • Commissioning of the water processing facilities is underway along with progress on the Comet Ridge to Wallumbilla pipeline loop;

  • Construction on the 420 km gas pipeline is progressing well, with clearing and grading complete, along with rehabilitation for over 190 km of the pipeline route; and,

  • The project is on track for first LNG in 2015.

APLNG Project

APLNG shareholders

  • Sinopec 25%

  • ConocoPhillips (downstream operator) 37.5%

  • Origin (upstream operator) 37.5%

Percentage complete <50% Scope

The Australia Pacific LNG (APLNG) Project involves the construction of a two-train CSG-to-LNG facility on Curtis Island utilising Origin’s Queensland CSG reserves and resources. The LNG plant will be four trains, to be constructed using Cascade technology, and will have the capacity to produce up to 18 million t per annum (MMt/a) of LNG.

The project includes the construction of a 530 km, 900-1,050 mm API 5L externally coated gas transmission pipeline from the Surat and Bowen basins to the LNG processing site. The pipeline will have a capacity of 1,560 terajoules per day.

Highlights

  • In July 2013, the APLNG Project successfully raised the roof of one of two LNG storage tanks;

  • In November 2013, a gas swap and infrastructure connection agreement was signed with the GLNG Project;

  • In December 2013, ConocoPhillips launched a training program in partnership with Central Queensland Institute of TAFE, Southern Alberta Institute of Technology and Petroskills. The program aims to train employees to operate the facility on Curtis Island in order to ensure a smooth transition from construction to operation; and,

  • The first LNG train is on track for start-up in the second quarter in 2015. The second train is approximately three months ahead of the financial investment decision schedule, with start-up in the four quarter of 2015.

Arrow LNG Project

Arrow LNG shareholders

  • Shell 50%

  • PetroChina 50%

Scope

The proposed Arrow LNG Project involves a CSG-to-LNG processing facility planned for Curtis Island. The LNG plant will be developed in two stages with a nominal capacity of 16 MMt/a of LNG, with potential for up to 18 MMt/a. The first stage will see the construction of two LNG trains with a nominal capacity of 4 MMt/a, which will begin producing LNG in 2017 and 2018 respectively.

Construction of the third and fourth trains is expected to commence five years after the completion of Stage 1.

Highlights

In December 2013, Federal Environment Minister Greg Hunt approved Arrow Energy’s proposed LNG plant on Curtis Island. The LNG plant, which gained approval from the Queensland State Government in September 2013, is one of five developments under assessment or previously approved that together comprise Arrow’s CSG-to-LNG project.

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