QGC to spend $3 billion on LNG Project

Submitted by Jim Thesiger on 8 February, 2010 - 07:12

One of the leading coal seam gas producers QGC, formerly know as Queensland Gas Company (QGC), which primarily focuses on exploration, production and supply of onshore gas have declared that it will spend more than $US3 billion on its liquefied natural gas (LNG) operation at Curtis Land, Queensland. QGC will invest the money in the project in next six months. According to the company, the fund will be used for ordering various items including storage tanks, compressors and to get the site prepared for construction. QGC is expecting to start producing LNG in the year 2014. It is to be mentioned that the operation is underpinned by commitments for 8.3 million tonnes per annum from foreign buyers from China, Chile and Singapore. The Queensland and federal governments are yet to approve the Curtis Island project which is located near Gladstone. QGC will start the construction once the project gets the approval.

It is to be mentioned that QGC is currently a part of British BG Group that bought the company during the year 2008. BG Group recently announced that the construction, engineering and procurement contract for the Curtis Island project has been awarded to Bechtel Oil, Gas & Chemicals. The necessary equipments and materials that are needed to build the pipelines for transporting gas to Gladstone are currently being purchased. According to Catherine Tanna, the managing director of QGC, the Queensland LNG project is expected to create a huge number of direct jobs during the construction and during the operations. She also added that between now and 2021, the LNG operation is expected to generate as much as $32 billion in value-added activity for Queensland.

Chief executive of BG Group Frank Chapman discussed with the analysts regarding the project in London recently following the announcement of the company results. He stated that, it is important to have reserves to make an LNG operation successful- something that his side already has and there is a huge demand available in the market making the LNG project more lucrative.