First Gas from Curtis Island LNG Plant Loaded for Export

In a world-first milestone, the first cargo of liquified natural gas (LNG) from BG Group’s QCLNG facility on Curtis Island near Gladstone was loaded on a tanker last week, ready for export.

QCLNG is the world’s first LNG project to be supplied by coal seam gas.

The start of production from the plant’s first LNG train is the result of more than four years of development and construction on Curtis Island.

Andrew Gould, interim Executive Chairman said it was an immense achievement.

“The start-up of QCLNG is testament to the hard work, skill and dedication of all our employees, partners and customers including the thousands of individuals who have been involved in physically building the plant. The ongoing support from both the State Government of Queensland and the local councils of our upstream region and in Gladstone has also been pivotal in this development. We thank them all.”

The project will expand further with the start-up of the second train in the third quarter of 2015. At plateau production, expected during 2016, QCLNG will have an output of around 8 million tonnes of LNG a year.

Acting Queensland Premier Tim Nicholls said the first shipment was a significant milestone.

“It will have huge benefits for the state’s economy; boosting export income, creating ongoing jobs and at peak capacity approximately $500 million a year in royalties for Queensland,” Mr Nicholls said.

“With total investment to date of about $60 billion in gas infrastructure, the LNG industry is set to become Queensland’s second largest export industry, following coal.”

Mr Nicholls said protecting the Great Barrier Reef was the Government’s highest priority, and the new LNG shipments would be strictly regulated and monitored as they tracked outside the reef.

“The LNG sector will underpin Queensland’s projected economic growth of 5.75 per cent in 2015-16.”

When the three major LNG export projects are completed and fully operational, which is expected to occur by 2017, the Port of Gladstone will have a production capacity of 25.3 million tonnes of LNG a year.