24th Jun 2014 09:38
LONDON (Alliance News) - BG Group PLC subsidiary QGC Pty Ltd Tuesday said it has started operating a network of natural gas processing facilities in Queensland, a key step towards BG Group's goal of producing liquefied natural gas from its Curtis Island plant in the fourth quarter of 2014.
QGC is focused on establishing the world's first project, Queensland Curtis LNG, to convert gas from coal seams into liquefied natural gas.
The company said the seven facilities comprise six compression stations feeding gas drawn from hundreds of wells into the larger Ruby Jo Central processing plant, which will send gas through a 540 kilometre underground pipeline network to the QCLNG export facility.
The facilities are the first to start operating under a contract QGC awarded to Thiess Pty Ltd last September for the construction of 17 field compression stations and four central processing plants at three hubs in the Surat Basin region.
"The central processing plant and field compression stations represent a remarkable achievement over more than two-and-a-half years by 1,500 engineers, civil works contractors, mechanics, welders, electricians and other trades," QGC Managing Director Mitch Ingram said in a statement.
"Importantly, we delivered these seven upstream facilities safely while providing opportunities for local businesses and workers," he added.
BG Group has a USD20.4 billion budget for the construction and commissioning phases at the site, where it already has LNG sales agreements for almost 10 million tonnes a year with the China National Offshore Oil Corporation, Tokyo Gas, GNL Chile, Chubu Electric, and the Energy Market Authority of Singapore.
BG Group shares were up 1.8% to 1,293.50 pence, putting it top of the FTSE 100 risers on Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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