BG takes over as QCLNG train 1's operator

OREANDA-NEWS. BG's Australian subsidiary QGC has officially taken over as operator of the 8.5mn t/yr Queensland-Curtis LNG (QCLNG) plant's first liquefaction train from US contractor Bechtel.

The transfer marks the start of commercial operations at QCLNG, BG said today. The UK-listed firm has two term contracts with China's state-controlled CNOOC for 8.6mn t/yr of supplies, which it is expected to fulfil primarily through QCLNG volumes. CNOOC is a foundation customer of QCLNG and owns 50pc of the 4.25mn t/yr train 1. BG holds the other 50pc.

BG also has term agreements with Japan's Tokyo Gas for 1.2mn t/yr, Chile's Quintero LNG for 1.7mn t/yr and power generation firms and gas distributors in Singapore for a total of around 2.7mn t/yr, which it is expected to fulfil through its global supply portfolio that includes QCLNG volumes. "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," chief executive Helge Lund said. The 4.25mn t/yr QCLNG train 2 is on track to start in this year's July-September quarter. The two trains are expected to produce around 8mn t/yr on reaching plateau output next year, slightly less than nameplate capacity.

Bechtel's handover of QCLNG train 1 to QGC also marks the end of its testing and commissioning phase, which lasted close to five months since production began at the end of 2014. The facility produced and delivered 16 cargoes during the period, which were delivered to term and non-term customers in countries like Singapore, Japan and China. Its second shipment, on the 170,000m? Methane Mickie Harper, was delivered in January to China's 3mn t/yr Dalian terminal operated by non-term customer PetroChina.

QCLNG is the world's first LNG plant that uses coal-bed methane (CBM) gas reserves as liquefaction feedstock. The first trains of two other CBM-LNG projects, the 9mn t/yr Australia-Pacific LNG and 7.8mn t/yr Gladstone LNG, are expected to start production during July-September this year.