Queensland has moved to strengthen its position as an emergent liquefied natural gas (LNG) export hub after the proponents of the Australia Pacific Liquefied Natural Gas (APLNG) project have made their final investment decision.

 

Queensland Premier Anna Bligh and Treasurer Andrew Fraser said the US $20 billion Final Investment Decision for an initial train and common facilities of a two train 9.0 million tonnes per annum coal seam gas to LNG project will secure 6000 jobs for Queenslanders.

 

The APLNG project comprises the development of coal seam gas fields in the Surat and Bowen Basins, a 450 km transmission pipeline to Gladstone and a LNG facility on Curtis Island, near Gladstone.

 

“The gas age we are creating right here right now will deliver decades of jobs and new business opportunities for Queensland families, that’s why we have done the hard yards on preparing for this incredible growth opportunity,” Ms Bligh said.

 

“The APLNG project has already invested $2.4 billion in Queensland in its first two and a half years as a joint venture project.”

 

“At the peak of construction, the project will have some 6,000 workers – including 2,700 in the gas fields and pipeline, and 3,300 at the LNG facility,” Ms Bligh said.

 

The Final Investment Decision represents US $20 billion in coal seam gas to LNG investment and is the third CSG to LNG scheme to commit to Queensland. The others are:

  • October 2010, Queensland Curtis Liquefied Natural Gas (QCLNG) (owned by BG/ QGC) made a final investment decision in October 2010 to invest $15 billion to develop a 2 train 8.5 Mtpa LNG project; and
  • Gladstone Liquefied Natural Gas (GLNG) (owned by Santos/ Petronas/ Total/ Kogas) made a final investment decision in January 2011 to invest $16 billion to develop a 2 train 7.8 Mtpa LNG project.

 

Mr Fraser expressed his confidence that the new projects would continue to generate tens of thousands of jobs, adding that existing projects could create upwards of 18,000 thousand jobs.

 

The conclusion of the deal comes as Queensland’s Government continues to stand by its positive economic outlook, saying that the state will return to 5 per cent GDP by the end of the 2011-12 financial year, despite the Fitch Ratings group denying the state a return to an AAA credit rating.