All gas facilities online in Gladstone Tuesday, 15 December 2015

All three LNG projects on Curtis Island, near Gladstone in Queensland, are now in production with the announcement of first production at the Australia Pacific LNG facility.

The project is a joint venture between Queensland’s Origin Energy, American energy company ConocoPhillips and Chinese energy company Sinopec.

Origin are responsible for the upstream process, the mining of coal seam gas (CSG) from the Surat and Bowen Basins around Miles between Chinchilla and Roma in western Queensland.

The CSG is then piped to Curtis Island where it will be processed into liquefied natural gas (LNG)  for export.

ConocoPhillips is managing this downstream process. It involves traces of impurities such as water and CO2 being removed from the gas before it is refrigerated in a number of stages to liquefy the final product.

Australia Pacific LNG CEO Page Maxson said the LNG production marked the final milestone for the facility prior to its first LNG by the end of the year.

“The production of first LNG marks a successful commissioning and start-up phase of the LNG facility by downstream operator ConocoPhillips and contractor Bechtel,” said Maxson.

“As we continue to cool down the facility and produce LNG, we are well placed to export our first LNG cargo in coming weeks.”

The other projects on Curtis Island include the Queensland Curtis LNG project, which started production from its first train in December last year and its second train in July this year, and the Gladstone LNG project which began production in August with its first export shipment in October.

Santos Managing Director David Knox said the first export for the Gladstone LNG project was the culmination of a historic journey.

“The first cargo from GLNG strengthens our position as a major and competitive LNG supplier to Asia,” said Knox.

“GLNG is a robust project and will generate strong cash flows for the business for decades to come.”

The QCLNG project is a joint venture involving BG Group, CNOOC and Tokyo Gas. BG Group Chief Executive Helge Lund said he was pleased to be part of a new LNG industry based on natural gas in coal seams.

“With both trains now fully operational, QCLNG adds significant volumes and flexibility to our LNG shipping and marketing portfolio,” he said.

 

Photo: Australia Pacific LNG.