Transcript Mr Ryan Skehan

Department of Employment, Economic Development and Innovation
Queensland LNG Industry Snapshot
May 2011
Queensland Government Modelling
 Overall, if all projects proposed for Queensland progressed, this
would represent 50 Mtpa of production annually
 Government modelling on a mid-range 28 Mtpa industry has
concluded the following benefits
 Creation of 18,000 direct and indirect jobs
 Increase Gross State Product by $3.2 billion
 Over $40 billion in private sector investment
 Generate royalties of over $850 million per year
© The State of Queensland, Department of Employment, Economic Development and Innovation, 2011
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LNG Future Demand
© The State of Queensland, Department of Employment, Economic Development and Innovation, 2011
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LNG projects in the Asia Pacific Region
Pluto LNG
• Complete
• 4.8 mtpa
Shell Floating LNG
• FEED
BLNG
• Completed
• 7.2 mpta
Northwest Shelf
• Completed
Tangguh LNG
PNG LNG
• Completed
• Construction
• 3.8 mtpa
• 6.3 mtpa
• 16.3 mtpa
• 3.5 mtpa
Wheatstone LNG
• FEED
• 9.2 mtpa
Sunrise Gas
Project
• FEED
• 8 mtpa
Devil Creek
Development
Project
• QCLNG
• FEED
• APLNG
• GLNG
• LNG Limited
Darwin LNG
• Completed
• 3.2 mtpa
Gorgon LNG
• Construction
• 15 mtpa
© The State of Queensland, Department of Employment, Economic Development and Innovation, 2011
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QLD LNG Projects
Project
QCLNG
Ownership
BG Group 100%
Project Status
LNG Production
 State Government Approval - June 2010
 Federal Government Approval – October 2010
 Final Investment Decision – October 2010
 First shipment expected – 2014
 Customers – CHNOOC , Tokoyo Gas &
Chubu Electric
Initial capacity
 2 trains - 8.5 mtpa
Total
Estimated
Capex
AUD $15 billion
Total possible capacity
 3 trains – 12 mtpa
GLNG
Santos 30%
Petronas 27.5%
Total 27.5%
Kogas 15%
 State Government Approval – May 2010
 Federal Government Approval – October 2010
 Final Investment Decision – January 2011
 First shipment expected – 2015
 Customers – Kogas and Petronas
Initial capacity
 2 trains – 7.8 mtpa
AUD$16 billion
APLNG
Origin 42.5%
ConocoPhillips 42.5%
Sinopec 15%
 State Government Approval – August 2010
 Federal Government Approval –February 2011
 Final Investment Decision not yet granted
 First shipment expected – 2015
 Customers – Sinpoec
Initial production
 2 trains – 9 mtpa
AUD $36 billion
(for 4 train project)
 Project about to commence FEED
 Initial production 9
mtpa
Arrow LNG
Shell 50%
PetroChina 50%
Total possible capacity
 4 trains – 18 mtpa
Unknown
 Full capacity 16mtpa
Fishermans
Landing
LNG
LNG limited
 Environmental Approvals – April 2009
© The State of Queensland, Department of Employment, Economic Development and Innovation, 2011
 2 trains – 3 mtpa
AUD $1.2 billion
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The big 4 - gas reserves
Gas tenements - the big 4
Gas reserves as of December 2010
16000
14942
14000
12627
petajoules
12000
10710
10000
8000
6000
7661
7737
7265
5005
1P
2P
3P
4420
4000
2000
1527
1427
749
703
0
GLNG
QCLNG
© The State of Queensland, Department of Employment, Economic Development and Innovation, 2011
APLNG
Arrow
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CSG to LNG in Queensland
© The State of Queensland, Department of Employment, Economic Development and Innovation, 2011
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The CSG to LNG Process – how it works
Customers
Field
Compression
Drilling Rig
Station
Central
Processing
Plant
Water Pipeline
Main Gas Pipeline
Water
Treatment
Facility
Brine Contaminate Pond
Treated Water Storage
© The State of Queensland, Department of Employment, Economic Development and Innovation, 2011
LNG Plant
LNG Tanker
Beneficial Water End User
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Water Related Issues

•
Queensland Coal Seam Gas Water
Management Policy introduced in June 2010
The policy deals with:
– use of CSG water
– evaporation dams
– design standards for CSG water
aggregation and brine dams
– transitional arrangements for existing dams
– management of saline effluent and solid
salt wastes from water treatment and
evaporation processes
Download
:www.derm.qld.gov.au/environmental_management/coal-seamgas/water-policy.html
© The State of Queensland, Department of Employment, Economic Development and Innovation, 2011
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Water Related Infrastructure Example -QCLNG
Extracts from the QCLNG Environmental Impact Statement conclude a
need for 6,700 km’s of water pipelines
• The pipelines will connect:
– 92 in-line buffer storages with a total capacity of 19 ML, covering a total
area of 2 ha
– 35 regional storage ponds with a combined storage volume of 2,000 ML,
covering a total area of 35 ha
– two collection header ponds with total storage of 4,000 ML to hold 30 days
water supply
– two raw water storages with total capacity 1,000 ML and a total footprint of
14 ha
– two treated water ponds with 450 ML capacity, covering an area of 6 ha.
© The State of Queensland, Department of Employment, Economic Development and Innovation, 2011
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Water Related Infrastructure Example -QCLNG
• Central Development Area will produce approximately 32ML/per day.
• North West Development Area will produce approximately 87ML/per day.
• South East Development Area will produce approximately 72ML/per day.
© The State of Queensland, Department of Employment, Economic Development and Innovation, 2011
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QCLNG Tiers of supply to date
Project Ownership
Major Tier 1 Suppliers
Contractor
Nature of contract
Est. Value
Worley Parsons
Gas field facilities
$580M
Thiess
Site works
$136M
Lang O’Rourke/GE Betz
Water treatment facility
$350M
MCJV (McConnell Dowell & CCC
Main pipeline construction
Unkown
Bechtel Oil & Gas
Liquefaction plant engineering procurement & construction
$7B-$9B
© The State of Queensland, Department of Employment, Economic Development and Innovation, 2011
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More Information
Visit www.lng.industry.qld.gov.au and download
LNG Blueprint #1 released September 09
LNG Blueprint #2 released November 10
For project approval conditions visit www.dip.qld.gov.au and search for QCLNG, GLNG & APLNG
© The State of Queensland, Department of Employment, Economic Development and Innovation, 2011
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GLNG Tiers of supply to date
Project Ownership
Major Tier 1 Suppliers
Contractor
Nature of contract
Est. Value
Fluor
Upstream facilities EPC
$3.5B
Saipem
Main pipeline construction
$1B
Bechtel Oil & Gas
Liquefaction plant engineering procurement & construction
$7B-$9B
© The State of Queensland, Department of Employment, Economic Development and Innovation, 2011
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APLNG Tiers of supply to date
Project Ownership
Major Tier 1 Suppliers
Major Tier 2 Suppliers
Contractor
Nature of contract
Est. Value
Savanna
Drilling & workover rigs
$220M
Enerstream (Baulderstone and
Conneq Infrastructure Services)
Gas field early works
Unknown
MCJV (McConnell Dowell &
CCC
Main pipeline construction
unknown
Bechtel Oil & Gas
Liquefaction plant engineering procurement & construction
$7B-$9B
© The State of Queensland, Department of Employment, Economic Development and Innovation, 2011
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