21st May 2015 11:25
News Release |
21 May 2015
BG Group assumes operational control of QCLNG and meets pre-conditions for pipeline sale
BG Group today announces that operational control of Train 1 at its Queensland Curtis LNG plant has been formally transferred to QGC, BG Group's Australian subsidiary, from Bechtel Australia, which constructed the facility.
In addition, the Company announces that approval for the sale of its QCLNG gas pipeline has been received from BG Group's Train 1 equity partner, the China National Offshore Oil Company (CNOOC). As a result, the preconditions for sale of the QCLNG pipeline to APA Group have been satisfied in full. The sale of the pipeline remains on track for completion in the second quarter of 2015.
The transfer of operational control of Train 1 marks the start of commercial operations at QCLNG. First production from Train 1 occurred in December 2014, with 16 cargoes shipped to date. QCLNG's Train 2 is currently under construction, and is expected to start operations in the third quarter of 2015.
Helge Lund, BG Group's Chief Executive, commented:
"We are pleased to be taking operational control of QCLNG following its successful start-up and commissioning over the past six months. I would like to thank our partners Bechtel for building this world-first facility and helping to establish the LNG industry on the east coast of Australia. The cargoes from Train 1, along with those from Train 2 when it starts up later this year, will add flexibility to BG Group's LNG portfolio. The transfer of operational control, and CNOOC's approval, have also progressed our pipeline disposal, which we expect to complete in the coming weeks."
-ends-
Notes to Editors:
· BG Group holds around 74% equity interest in the upstream resource and related infrastructure supplying QCLNG; and 100% of the project's common facilities on Curtis Island (including LNG storage tanks and jetty).
· BG Group agreed to sell its 100% equity interest in the 540 kilometre pipeline to APA Group for US$4.5-5 billion.
About BG Group:
BG Group plc (LSE: BG.L) is a world leader in natural gas, with a broad portfolio of business interests focused on exploration and production and liquefied natural gas. Active in more than 20 countries on five continents, BG Group combines a deep understanding of gas markets with a proven track record in finding and commercialising reserves.
BG Group trades in the US in the form of ADRs (American Depositary Receipts) on the OTCQX International Premier market under the symbol (OTCQX:BRGYY).
For further information visit: www.bg-group.com
There are matters set out within this announcement that are forward-looking statements. Such statements are only predictions, and actual events or results may differ materially. For a discussion of important factors which could cause actual results to differ from these forward-looking statements, refer toBG Group's Annual Report and Accounts for the year ended 31 December 2014. BG Group does not undertake any obligation to update publicly, or revise, forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.
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