QGC has partnered with BOC to open a new LNG plant near Chinchilla, QLD.
The micro-plant was officially opened by QLD premier Campbell Newman, who also used the opportunity to launch the state's new Queensland Fuels and Energy Strategy.
BOC and QGC built the plant as part of a long term gas supply agreement, in which QGC will supply gas to BOC, who will then liquefy it for domestic use in the mining, manufacturing, and long-haul trucking markets.
The two companies will invest around $200 million in the plant and supply chain infrastructure over the next 15 years, as the site produces up to 50 tonnes of LNG per day, equivalent to approximately 70 000 litres of conventional diesel per day.
The plant will use natural gas supplied by QGC from the Roma-Brisbane pipeline.
QGC technical and commercial director Walter Simpson explained how natural gas development in the state is aiding the local economy.
"Meeting gas supply commitments under long-term contracts with domestic customers, such as BOC, is our first order of priority for QGC's natural gas production," Simpson said.
"Over the next few years we will be ramping up production in order to also keep our two trains full at Curtis Island producing LNG for international markets."
Colin Isaac, BOC South Pacific MD, said the plant is part of a new era in cleaner fuel.
"This plant marks the start of a new industry for Queensland giving local and interstate manufacturing, off grid electricity generation and heavy transport users the opportunity to switch to LNG, an environmentally cleaner fuel than current alternatives,'' Isaac said.
"LNG produces up to 25% fewer emissions than diesel when used for transport and is a proven, safe alternative to other fossil fuels. It is also ideal for marine vessels and is Great Barrier Reef friendly because unlike diesel and marine oil it evaporates if spilled with no toxic effects."