Queensland Gas Company and BG Group Award Bechtel FEED Contract for LNG Production Plant in Australia

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Researched by Industrial Info Resources (Sugar Land, Texas)--Queensland Gas Company Limited (ASX:QGC) (Brisbane, Australia) and BG Group plc (OTC:BRGYY) (Reading, United Kingdom) have teamed up to construct a liquefied natural gas (LNG) production plant in Gladstone, Australia. The proposed Curtis LNG plant will have an initial production capacity of 3.5 million to 4 million tons per year and will utilize the Phillips Cascade liquefaction process. The plant could be expanded up to 12 million tons per year of product.

The natural gas will be sourced from a coal seam and then transported through a 380-kilometer pipeline to the Curtis LNG plant. The entire project has a proposed capital price tag of approximately $8 billion dollars, and the joint venture expects to make a final investment decision in early 2010.

The joint venture has selected Bechtel Group Incorporated (San Francisco, California) for the front end engineering and design contract and continues to negotiate with Bechtel for the engineering, procurement and construction contract for the main liquefaction plant. BG Group and Bechtel have a long association regarding LNG production facilities and have previously constructed a total of six trains.

If both Queensland Gas Company and BG Group issue a positive financial investment decision in 2010, then site preparation and construction should begin in late 2010 or early 2011. Completion of the Curtis LNG production plant is expected in late 2013.

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