BG Group, Partners to Spend A$1.7 bn on Gas Drilling for QCLNG Project

QGC Pty Limited, along with joint venture partners China National Offshore Oil Corporation (CNOOC) and Tokyo Gas, on Monday announced a two-year, A$1.7 billion development of its natural gas tenements west of Wandoan, Queensland to support gas production.

The moves has been approved by QGC’s parent company BG Group. QGC has a 73.75 percent interest in the relevant natural gas tenements.

The development, known as Charlie, involves the construction of 300-400 wells, a large field compression station and associated pipelines and facilities which will feed into existing gas processing and water infrastructure at Woleebee Creek, the company said.

“The works are part of the continuous development of QGC's tenements in the Surat Basin to sustain natural gas supply to both domestic customers and the two-train Queensland Curtis LNG (QCLNG) liquefaction plant on Curtis Island, near Gladstone,” QGC stated.

The QCLNG plant has delivered 62 cargoes since first LNG production in December 2014. It is a project to liquefy coal seam gas (CSG) and deliver it as LNG.