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BG pushes back decision on QCLNG expansion

  • Märkte: Natural gas
  • 11.09.13

Sydney, 11 September (Argus) — UK-listed energy firm BG has pushed back the timeframe for making a decision on a third train at its 8.5mn t/yr Queensland Curtis LNG (QCLNG) project. Any expansion of the $20.4bn venture at the port of Gladstone will only occur after the approval of LNG projects in North America and Tanzania.

BG indicated this week that it is looking to make a final investment decision (FID) by 2017 on its 14mn t/yr Prince Rupert LNG project in Canada, the 15mn t/yr Lake Charles LNG venture in the US and the 10mn t/yr Tanzania LNG project. But it gave no guidance on a FID for a third train at QCLNG. BG subsidiary QCG's managing director Derek Fisher said in May that an investment decision on the third train will have to wait for two or three years of exploration to prove up sufficient resources.

The QCLNG project is on budget and on schedule to deliver first LNG shipments by the end of 2014, BG said. The company has space to expand at Curtis Island at Gladstone, with the QCLNG liquefaction plant being built for five trains.

Seven LNG projects with more than 60mn t/yr of capacity are under construction in Australia, including QCLNG. But the country has gained a reputation for high construction and operating costs that has deterred further upstream investment.

QCLNG was hit by a 36pc rise in construction costs last year. Australian independent Santos, which operates the 7.8mn t/yr Gladstone LNG venture that is also being built on Curtis Island, estimates that development costs of LNG projects in Australia are 20-30pc higher than in North America and east Africa.

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