QGC has announced a two-year $1.7 billion development of its natural gas tenements, west of Wandoan, to support gas production, which is expected to create 1600 jobs for the region.
The company, along with joint venture partners China National Offshore Oil Corporation and Tokyo Gas, plans to sink 300-400 wells and build compression stations and pipelines at the development, known as Charlie.
The works are part of the continuous development of QGC’s tenements in the Surat Basin to sustain natural gas supply to both domestic customers and the two-train Queensland Curtis LNG (QCLNG) liquefaction plant on Curtis Island, near Gladstone.
QGC, which has appointed Leighton Contractors Pty Limited as the main works contractor, will progress development and construction immediately. Major infrastructure will be built on QGC property.
Managing Director Tony Nunan said this was an important investment in the future of QGC’s operations and built on the success of the world-first production of liquefied natural gas from coal seams in the past year.
The QCLNG plant has delivered 62 cargoes since first LNG production in December 2014.
“This is a vote of confidence in the secure, long-term future of Queensland’s natural gas industry, which will employ Queenslanders for many years to come,” Mr Nunan said.
“The Charlie development will help to sustain the benefits of our investment in local communities and the state, including up to 1,600 construction jobs and business opportunities during the two-year project.”
Queensland Resources Council chief executive Michael Roche said the Queensland natural gas industry has taken another important step forward.
“This is a major investment in the future of the Queensland natural gas sector, which has been a major creator of jobs and a generator of broader economic benefit over the past five to seven years,” he said.
“The fact that the QGC’s Charlie Project will create up to 1600 construction jobs, and provide other major business benefits for communities around Taroom, Wandoan and Chinchilla, is proof of the gas sector’s ongoing vital importance to the Queensland and Australian economies.
“Queensland has led the way in developing a world-class natural gas industry and the announcement of another major development is testament to the confidence that proponents have in the industry.
“This major investment by the QGC consortium partners sees the Queensland gas export sector tap into the 160 per cent growth in Asian gas demand out to 2040.”