Australia Pacific LNG project approved

Australia Pacific LNG - one of Australia’s largest LNG export projects, comprising world-class coal seam gas resources and a LNG facility on Curtis Island off Gladstone in Queensland – has been approved for development. The Final Investment Decision is to proceed with the initial construction of one train and common facilities for a two train development.

The project’s first LNG exports are scheduled to start in mid 2015, and are underpinned by a 4.3mtpa sale and purchase agreement with China Petroleum & Chemical Corporation (Sinopec Corp.). The approval of the second LNG train is expected in time to enable its start up in early 2016.

Early site works for the project, including mobilisation on Curtis Island have commenced and long lead items have been ordered to maintain the project schedule. Australia Pacific LNG, a 50-50 joint venture between ConocoPhillips and Origin Energy, already employs 1,600 people, mostly in Queensland, and will create 6,000 construction jobs and 1,000 operational jobs for the ongoing operation of the project. The project consists of the further development of the APLNG’s CSG fields, a gas transmission pipeline to the Queensland coast and a gas processing plant and associated facilities where the gas will be cooled and liquefied for shipping overseas.   Origin will be responsible for the development and management of the CSG facilities including the gas fields and pipeline and ConocoPhillips will be responsible for the construction and management of the LNG plant.

The gas fields and pipeline components of the project will generate a peak workforce of approximately 3,000 workers during the development and construction phase and approximately 1,000 during the operational phase.  The LNG facility component of the project will generate a peak workforce of approximately 2,100 workers during the construction phase.  A workforce of around 100 is estimated to be required to operate the first LNG train at the LNG facility, with around 75 further people required for each additional train.