queensland lng industry snapshot

Department of Employment, Economic Development and Innovation

Queensland LNG Industry SnapshotMay 2011

2© The State of Queensland, Department of Employment, Economic Development and Innovation, 2011

Queensland Government Modelling

Overall, if all projects proposed for Queensland progressed, this would represent 50 Mtpa of production annually

Government modelling on a mid-range 28 Mtpa industry has concluded the following benefits

Creation of 18,000 direct and indirect jobs Increase Gross State Product by $3.2 billion Over $40 billion in private sector investment Generate royalties of over $850 million per year


LNG Future Demand


Northwest Shelf

• Completed

• 16.3 mtpa

Pluto LNG

• Complete

• 4.8 mtpa

Shell Floating LNG

• FEED

• 3.5 mtpa

Wheatstone LNG

• FEED

• 9.2 mtpa

Sunrise Gas Project

• FEED

• 8 mtpa

• QCLNG

• GLNG

• APLNG

• LNG Limited

PNG LNG

• Construction

• 6.3 mtpa

Tangguh LNG

• Completed

• 3.8 mtpa

Devil Creek Development Project

• FEED

Gorgon LNG

• Construction

• 15 mtpa

Darwin LNG

• Completed

• 3.2 mtpa

LNG projects in the Asia Pacific Region

BLNG• Completed• 7.2 mpta


Project Ownership Project Status LNG Production Total Estimated

Capex

QCLNG BG Group 100% State Government Approval - June 2010 Federal Government Approval – October 2010 Final Investment Decision – October 2010 First shipment expected – 2014 Customers – CHNOOC , Tokoyo Gas & Chubu Electric

Initial capacity 2 trains - 8.5 mtpa

Total possible capacity 3 trains – 12 mtpa

AUD $15 billion

GLNG Santos 30%Petronas 27.5%Total 27.5%Kogas 15%

State Government Approval – May 2010 Federal Government Approval – October 2010 Final Investment Decision – January 2011 First shipment expected – 2015 Customers – Kogas and Petronas

Initial capacity 2 trains – 7.8 mtpa

AUD$16 billion

APLNG Origin 42.5%ConocoPhillips 42.5%Sinopec 15%

State Government Approval – August 2010 Federal Government Approval –February 2011 Final Investment Decision not yet granted First shipment expected – 2015 Customers – Sinpoec

Initial production 2 trains – 9 mtpa

Total possible capacity 4 trains – 18 mtpa

AUD $36 billion (for 4 train project)

Arrow LNG Shell 50%PetroChina 50%

Project about to commence FEED Initial production 9 mtpa

Full capacity 16mtpa

Unknown

Fishermans LandingLNG

LNG limited Environmental Approvals – April 2009 2 trains – 3 mtpa AUD $1.2 billion

QLD LNG Projects


Gas tenements - the big 4

1427

5005

7737

749

4420

10710

1527

7265

12627

703

7661

14942

0

2000

4000

6000

8000

10000

12000

14000

16000

pe

tajo

ule

s

GLNG QCLNG APLNG Arrow

Gas reserves as of December 2010

1P

2P

3P

The big 4 - gas reserves


CSG to LNG in Queensland


The CSG to LNG Process – how it works

Central Processing

Plant

Field Compression

Station

Main Gas Pipeline

LNG Plant

Customers

LNG Tanker

Water Pipeline

Water Treatment

Facility

Beneficial Water End User Treated Water Storage Brine Contaminate Pond

Drilling Rig


Water Related Issues

Queensland Coal Seam Gas Water Management Policy introduced in June 2010

• The policy deals with:– use of CSG water – evaporation dams – design standards for CSG water aggregation and

brine dams – transitional arrangements for existing dams – management of saline effluent and solid salt wastes

from water treatment and evaporation processes

Download:

www.derm.qld.gov.au/environmental_management/coal-seam-gas/water-policy.html


Water Related Infrastructure Example -QCLNG

Extracts from the QCLNG Environmental Impact Statement conclude a need for 6,700 km’s of water pipelines

• The pipelines will connect:– 92 in-line buffer storages with a total capacity of 19 ML, covering a total area of 2 ha– 35 regional storage ponds with a combined storage volume of 2,000 ML, covering a total area of 35

ha– two collection header ponds with total storage of 4,000 ML to hold 30 days water supply– two raw water storages with total capacity 1,000 ML and a total footprint of 14 ha– two treated water ponds with 450 ML capacity, covering an area of 6 ha.


Water Related Infrastructure Example -QCLNG

• Central Development Area will produce approximately 32ML/per day.• North West Development Area will produce approximately 87ML/per day.• South East Development Area will produce approximately 72ML/per day.


QCLNG Tiers of supply to date

Project Ownership

Major Tier 1 Suppliers

Contractor Nature of contract Est. Value

Worley Parsons Gas field facilities $580M

Thiess Site works $136M

Lang O’Rourke/GE Betz Water treatment facility $350M

MCJV (McConnell Dowell & CCC Main pipeline construction Unkown

Bechtel Oil & Gas Liquefaction plant engineering procurement & construction $7B-$9B


More Information

Visit www.lng.industry.qld.gov.au and download

LNG Blueprint #1 released September 09 LNG Blueprint #2 released November 10

For project approval conditions visit www.dip.qld.gov.au and search for QCLNG, GLNG & APLNG


GLNG Tiers of supply to date

Project Ownership



Fluor Upstream facilities EPC $3.5B

Saipem Main pipeline construction $1B



APLNG Tiers of supply to date

Project Ownership



Savanna Drilling & workover rigs $220M

Enerstream (Baulderstone and

Conneq Infrastructure Services)

Gas field early works Unknown

MCJV (McConnell Dowell & CCC

Main pipeline construction unknown



queensland lng industry snapshot

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